Honda has confirmed pricing for its new-look 2014 compact sedan, the City, starting at $15,990 for the VTi model with a manual transmission -- $500 lower than the previous model.
Arriving in mid-April, customers can also add an automatic gearbox (CVT) as a $2000 option, which represents a saving of $500 over the previous City, at $17,990.
The Japanese importer hopes to see an uptick in sales in the price-sensitive light car segment with the City's new pricing, with other new features such as the exterior styling and an all-new platform that liberates more interior space also expected to attract attention.
Honda says the compact sedan boasts class-leading boot space of 536 litres, an increase of 30 litres.
Standard features on the entry-level VTi models include a reversing camera, cloth seats, four-speaker stereo and Bluetooth phone connectivity with audio streaming, which takes advantage of a new infotainment system dubbed Display Audio. The latter can integrate with several apps and can pair with the iPhone's Siri assistant for voice control.
Step up to the VTi-L model, pegged at $21,390, and the 15-inch steel wheels are replaced with 16-inch alloy rims and fog-lights are added, as are electric mirrors, key-less entry and engine start, climate control, and leather touches on the steering wheel.
Honda is also offering a special Sports Pack launch edition, which costs $1000 and adds a Modula sports body kit comprising side skirts, extended front and rear aprons, and a sporty grille.
Power for the new models comes from an 88kW/145Nm four-cylinder 1.5-litre engine, which drinks fuel at a claimed rate of 5.7L/100km. Honda says this is 14 per cent more efficient than its predecessor.
The car measures 4440mm long and 1695mm wide, identical to the previous model, but the car's new platform means its wheelbase is 50mm longer, which Honda says increases passenger space in the cabin.
Honda's new City sedan is the first strike in a three-pronged new vehicle assault on the compact car segment; it will be followed by the brand new Jazz hatch mid-year and Vezel micro SUV in early 2015.
2014 Honda City pricing (not including on-road costs)
VTi manual $15,990
VTi CVT $17,990
VTi-L CVT $21,390
VTi-L CVT with launch-edition Sports Pack $22,390