Honda will launch two new 1.3 to 1.5-litre subcompact models this year with a worldwide sales target of 150,000 to 200,000 units a year. One model will replace the current Logo hatchback launched in 1996 but will have a new name and be powered by a clean-burning i-VTEC engine. Honda sources claim the new car will be the most fuel-efficient in its class. It will be sold in all major markets except North America.