The car will be priced at Rs 6.83 lakh and 9.86 lakh for its petrol variant while its diesel version costs Rs 8.25 lakh to Rs 11.31 lakh.

Mobilio, which has already garner about 7,000 orders from when bookings opened in early July, is expected to push Honda to the third-largest domestic carmaker spot in the next few months, behind Maruti and Hyundai right now it is trailing close behind Mahindra & Mahindra.

Honda Cars India president and CEO Hironori Kanayama said, “The launch of Honda Mobilio follows the success of Honda Amaze and the new City, which led to our exceptional growth of 83 per cent in the previous financial year.”

The car is developed at the company’s R&D centres in Bangkok exclusively for the Asian markets, particularly Indonesia and India. During the fiscal 2013-14, Honda Cars India reported 83 percent increase in sales at 1,34,339 units as against 73,483 units during the previous year.

Honda India aims at selling 300,000 units annually by March 2017.

Mobilio is based on Honda’s latest Earth Dreams Technology, the 1.5 litre i-DTEC diesel engine which delivers a power of 100 ps at the rate of 3600 rpm, maximum torque of 200 Nm at the rate 1750 rpm and fuel economy of 24.2 kmpl as per test data. The 1.5 litre i-VTEC petrol engine delivers a maximum power of 119 ps at the rate of 6600 rpm, maximum torque of 145 Nm at the rate of 4600 rpm and fuel economy of 17.3 kmpl.

Jnaneswar Sen, Sr Vice-President (Marketing & Sales) said, “The company which currently has 170 dealerships across 107 cities hopes to take this number to 230 facilities in 150 cities by March 2015.”

The company hopes to open new dealerships in Bellary, Belgaum, Udupi, Shimoga and Gulbarga in a few months.