Tokyo, Oct. 24 (PTI): Japanese car maker Honda is planning to enter the Indian compact car segment by 2009 with the Jazz, which will be its first hatchback in the country.

“We started with premium cars and gradually expanded the portfolio. By entering the compact car market, we will further strengthen our position,” Honda Motor president Takeo Fukui said here.

Fukui said Honda could use the country as an export hub for select models if this fitted with its manufacturing plans in other countries such as Thailand. However, in every country the priority is the local market.

Honda Siel Cars India, the company’s joint venture with the Shriram group, is expanding capacity at its Greater Noida facility to one lakh units per year.

It is also setting up a plant in Rajasthan with an initial investment of Rs 1,000 crore and a capacity of 60,000 units.

“Once the facility is ready, we will roll out the Jazz, with a 1.2-litre engine from the plant. This will enable us to enjoy the excise benefit on small cars,” Honda Siel president and CEO M. Takedagawa said.

Takedagawa said the company would launch its hybrid Civic in India. “The homologation process is going on at Arai (Automotive Research Association of India, Pune) and by next year we will introduce the vehicle in the country,” he said.