Honda's 'emerging market' City sedan is to go on sale in Australia next February.

The model, which made its local debut as a 'concept' at a Sydney motor show, will come from Honda Thailand, the launch plant for the redesigned, third generation model, and also the source for other models sold in Australia due to a free trade agreement (and a source for neighbouring New Zealand, too).

The updated City was launched recently in India where the model line has been built and sold for several years.

"The City will add a new dimension to [our] light car range, meeting consumer demand for smaller, more fuel efficient cars and will complement [our] current light hatch[back], the recently launched all-new Jazz [City]," Honda Australia said in a statement.

The City sedan will be introduced in the country's 'light car' segment which has grown 33% since 2005. Sedans account for 13.7% of this segment, up from 7.9% in 2005 for an overall increase of 73%.

Honda Australia managing director Yasuhide Mizuno  claimed the City would be a new direction in the country's light sedan segment, unlike any other.

"The City's appeal is in its styling - a fun-to-drive car with a sporty persona. It has a very spacious interior and will be packed with safety features.

"It will offer sporty styling, excellent performance as well as being fuel efficient - features that consumers demand from this segment," Mizuno added.

The Australian-specification City will share its 1.5 litre EURO4 compliant engine with the Thai and Indian market versions and develops 88kW of power and 146Nm of torque, the same as the 1.5 litre Jazz VTi and Vti-S sold 'down under'. Fuel consumption and emissions are set to be impressively low, Honda Australia claimed.

Buyers will have a choice of five speed manual or automatic transmissions.