Honda Motor has launched its new Grace hybrid sedan – a derivative of the newer City sedan model built in Thailand and India – in Japan.

The automaker claims the compact sedan has rear cabin space close to that of the Accord Hybrid thanks to “ingenious packaging developed within a vehicle that features a long wheelbase”.

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The powertrain is the Sport Hybrid i-DCD one-motor hybrid system that enables the driver to start in EV mode and achieves fuel economy of up to 34.4 km/litre on the Japanese test cycle which is claimed to be the best among all hybrid sedan models on sale in Japan.

The usual Japanese-market 4WD version for customers in colder climates and snowy areas is claimed to be a segment first.

And that name? According to Honda: “The English word ‘grace’ includes the meaning of ‘elegance’ and ‘kindness’. The name Grace represents the passion of the development team who strived to create a sedan that envelops the time people spend in the vehicle with their loved ones.”