Honda is staying out of the race to develop ultra-cheap cars, hoping motorists in fast-growing markets like India will pay more for safer, greener vehicles, its president said on Wednesday.

"Honda will not make cars at such a low price," said Takeo Fukui, president and chief executive of Japan's second-largest automaker.

"I don't think our Indian customers buy cars that are cheaper but at the same time poor in quality," he told a press conference.

"Whether it is the Indian market or the Chinese market, I believe that state-of-the-art safety and environment friendly technologies are necessary for our products," he said.