Honda to introduce Li Nian with small engine in China

• Source: Global Times
• [16:44 January 20 2010]
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Li Nian concept

Developed by Honda and its Chinese partner Guangzhou Automobile Group, Li Nian will feature an engine smaller than 1.6 liters and will be launched in 2011 to compete with Nissan vehicles in China.

The small vehicle will be Honda's cheapest product in the largest auto market in the world.

Nissan sold more vehicles than Honda and Toyota in China last year, as Nissan's sales increased 39 percent from a year earlier.

Honda has two models, the City and Fit compacts with engines smaller than 1.6 liters now in the Chinese market, while Nissan has the cheaper Livina model.

"The under-1.6-liter mass-market segment is really hot right now," Koichi Kondo, executive vice president of Honda, said in an interview January 19 at the company's head office in Tokyo. "We see Li Nian as the product that will be able to compete in this range."

Though China has increased the tax on vehicle purchases to 7.5 percent from 5 percent on vehicles with engines of 1.6 liters or less, which was in effect from January 1 to the end of 2010, the small vehicle market is still very attractive to most Chinese customers.

Agencies and Shi Jierui contributed to this story