Honda has unveiled a concept version of its all-new A-segment car that will form the basis of the Ecocar project being touted by the government.

Currently on show at the 2010 AutoExpo in New Delhi, India, the five-door hatchback will go on sale initially in India and Thailand, according to the Japanese car-making heavyweight.

Honda hasn't been specific on the sales date of the production-ready model, but Motoring has learnt from sources that Thailand will stage the world debut of the country's second Ecocar at the year's end before going on sale as a MY2011 car.

No technical information has been revealed for the so-called Small Car Concept as it is intended to merely show the shape of Honda's new global low-cost car.

Honda stresses that the experimental vehicle highlights a wide platform that can accommodate five persons, low centre of gravity and an accentuated front fender design.

As seen in these official pictures, key details that are unlikely to make production are the fancy wheels, garish-looking side mirrors, "hidden" rear door handles and the pumped-up bumpers.

Sources say likely engines include either 1.0- or 1.2-litre petrol engine that could take the shape of three-cylinders (from previous generation Jazz sold in Japan). Nissan has already confirmed that its Ecocar - due on March 1 this year - will come with a three-pot petrol head.

Although Honda is keen in offering a traditional saloon for the Thai market, it has reportedly opted to launch a hatchback variation first due to the intricacies in Ecocar rules.

"A four-door is usually heavier [than a hatchback] which needs more power to ensure that fuel economy and CO2 emissions can meet the requirements of Ecocar," quipped a source.

"Moreover, we could strip down the car to make the price affordable [at under B400,000]. But Asian Honda [the regional headquarters] stressed that low cost can't compromise on quality."

Instead of resorting to a big engine, Nissan is allegedly looking at "hi-tech" features to improve fuel economy and emissions. It has confirmed a CVT transmission for Ecocar, likely to be called March, but not yet the rumoured automatic engine stop/start system.

In order to keep costs down as much as possible, Honda says it will utilise a global parts-sourcing system, similarly as what Toyota does with its current IMV-initiated Hilux pick-up line, whereby parts are pooled around the four global production bases.

Although the Thai-Indian FTA allows free flow of automotive components, Ecocar rules already permit tax-free importation of parts not made in Thailand.