Honda will release a hybrid, compact sport utility vehicle in November, the latest in a series of moves to broaden its lineup of hybrid cars, company sources have said.

The new vehicle will be Honda’s first hybrid SUV, using the same core system and platform as the redesigned Fit/Jazz hybrid scheduled for release in September. Currently, Honda’s sole compact SUV – the CR-V – is petrol or diesel-powered, according to market.

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To promote the new Fit and SUV hybrids, Honda will have 300 of its 2,200 domestic dealerships focus on compact and mini vehicles – up 20% from the current 250 locations – the Nikkei reported.

Honda said the Fit hybrid would offer fuel economy of 36.4km per litre of petrol, beating Toyota’s Aqua (Prius C) hybrid – which has the best econmy of all hybrids in the world now (35.4km/litre).

Honda has developed a dedicated hybrid system for small cars by using a high-output motor as a key component. This system allows a vehicle to travel on electric motors alone at low and medium speeds unlike its older IMA (integrated motor assist).

The company will build the new SUV at its plant in Yorii, Saitama Prefecture, which opened this month.

In Japan, hybrids and mini vehicles accounted for roughly 60% of all new vehicle sales in fiscal 2012, highlighting greater consumer interest in fuel economy. Honda enjoyed brisk sales of mini vehicles such as the N Box series. At Toyota, hybrids amounted to 42% of new car sales.

For fiscal 2013, Honda aims to sell 850,000 vehicles in Japan. Of this, hybrids are targeted at around 210,000 units, up 50% from fiscal 2012. The firm will seek to also boost sales of the Accord hybrid, launched in June. The car has a fuel economy of 30km/litre, comparable to a minicar.

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