City launched from $20,490

HONDA today launched its light-sized City sedan with a higher than expected entry-level price of $20,490 for the base VTi manual.

Powered by the same 88kW/145Nm 1.5-litre SOHC i-VTEC that is standard in the Jazz VTi hatch ($19,890), the four-door Jazz-based sedan is therefore $600 more expensive than the equivalent Jazz five-door – as well as $4000 pricier than the base 1.3-litre Jazz GLi hatch.

The pricing structure is in contrast to some of the City’s key light-car rivals that carry identical prices for both the five-door hatch and sedan versions, including the Holden Barina ($16,290) and Kia Rio 1.6 ($16,840).

Similarly, however, while Toyota’s top-selling Yaris is priced from $16,890 as a five-door (1.3 YR), the cheapest 1.5-litre Yaris five-door costs $18,540 (YRS) and the Yaris four-door range opens $500 higher at $19,040 for the 1.5 YRS sedan.

The Mazda2, Ford Fiesta, Nissan Micra, Hyundai Getz, Suzuki Swift and Mitsubishi Colt are currently only available in hatchback guise.

Today’s pricing announcement also makes the entry-level City just $2500 cheaper than the least expensive Honda small-car, the 1.8-litre Civic VTi sedan ($22,990). When GoAuto first drove the City in Thailand last October, pricing was expected to range between $18,000 and $21,000.

Standard VTi specifications include an anti-lock braking system (ABS) with electronic brake-force distribution (EBD) and brake assist, plus twin front, front side and side curtain airbags, front seatbelt pre-tensioners. power windows/mirrors, central locking and an iPod-compatible single-CD sound system with MP3 compatibility.

A second City variant in the VTi-L will also be offered, priced at $22,990, while five-speed automatic transmission versions of both models add $2300 to the price.

VTi-L versions gain tilt and telescopic steering wheel adjustment, 16-inch alloy wheels, chromed door-handles, foglights, premium-grade trim and leather steering wheel cladding.

Official fuel consumption is stated at 6.3L/100km for the standard five-speed manual version and Honda says that, at 506 litres, the City’s boot capacity is bigger than that of both the Accord (450 litres) and Accord Euro (467 litres), as well as Holden’s full-sized Commodore sedan.

Although new to Australia, Honda says the third-generation City sedan is the latest iteration of a model that has found more than one million buyers in 39 countries since 1996.

“From my previous experience in the Asia-Oceania region, I am very confident the new City will have universal appeal for buyers of all ages,” said Honda Australia managing director and CEO, Yasuhide Mizuno.

“It has the edgy styling that young people seek with plenty of room for those who frequently travel with friends. Added to that is the class-leading power, exceptional fuel economy, top-shelf quality and tremendous value-for-money that only Honda can provide. It sets a new benchmark for light sedans.”

2009 Honda City range pricing:
VTi	$20,490
VTi (a)	$22,790
VTi-L	$22,990
VTi-L (a)	$25,290

Read GoAuto's full story and drive impressions of the all-new Honda City range from Monday, February 9.

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First drive: Honda City makes good urban sense