New Honda Grace Hybrid Sedan Launched in Japan, Likely Based on City

For now, all we know for certain is that it's being described as a compact car. So does that make it a Civic? Actually, the term "compact" can be misleading, since the Jazz is classed as a compact there, even though it's small. Judging from the design of the taillights and headlights, we're fairly sure that this is actually the Honda City with a new engine.

The current generation City sedan is the sixth and was launched at the end of 2013, being produced in India, Thailand and Malaysia.

What's under the bonnet?

Honda doesn't want us to know what powers the Grace Hybrid yet. However, the Sport Hybrid i-DCD powertrain likely consists of a 1.5-liter VTEC and an electric motor, coupled to the automaker's Intelligent Dual-Clutch Drive. Just like the Fit/Jazz, all-wheel drive is being made available in Japan only.

The new Jazz or Fit Hybrid uses a four-cylinder, 1.5-liter Atkinson-cycle engine working together with a high-output electric motor and lithium-ion battery. Total output is rated at 135 hp at 6000 rpm and 125 lb-ft or torque at 5000 rpm. It can also run at speeds of up to 40 km/h (24 mph) in electric mode and offers a fuel consumption of just 36.4 km/l according to the domestic J08 cycle (equivalent to 85.6 mpg US / 102.8 mpg UK or 2.7 liters / 100 km).

In the overseas markets, the Honda City comes with either a 1.5-liter SOHC i-VTEC making 120 hp or a 1.5-liter i-DTEC with 100 hp.