The Japanese car maker Honda predicted that the Indian market will be the key factor for the small car projects on the lines of US and Europe market facing a crisis due to global economic downfall. Honda has no plans, however, to launch any small car projects like Nano or the one from Bajaj-Renault-Nissan JV. In the conditions of tough car market, the company is forced to seek an alternative market like India, said the company’s new President. For him the Indian market is a highly potential and there is no need to divert on low cost cars, he said.

The R&D wing of the company is looking for new explorations regarding small products to suit the Asian region with particular aspect of India. The small car, pointed towards the Indian market, will be meeting the demands of Indian specifications including the price and performance.