The second generation B-Segment Honda Jazz will go on sale in the UK late in 2008 - but might not remain the firm's smallest model for long.

Speaking ahead of the Tokyo Motor Show, Honda CEO and president Takeo Fukui said he was considering a smaller model for Europe. Size-wise, the newcomer could rival the likes of the Toyota Aygo and Fiat 500.

Fukui said: "There is no specific plan at the moment, but there is a demand and we're researching the possibility of bringing in something smaller than the Jazz to Europe."
 
Honda has city cars currently on sale in its home market - models such as the Life and the Zest - but their designs are very boxy by European standards.

Fukui isn't convinced they would meet with approval. "In Japan we have minicars, but I think it would be better to bring in something that has been specifically manufactured for Europe."

But he warned that, even then, making such a decision wasn't just a case of designing a car and launching it. He said he would have to consider the strategy behind the car, such as where it would be built, and how many units would be required.