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HONDA Australia has premiered an all-new concept vehicle for the Australian market at the Australian International Motor Show - the Honda City.

The City will add a new dimension to Honda's light car range, meeting consumer demand for smaller, more fuel efficient cars and will complement Honda's current light hatch, the recently launched all-new Jazz.

The City sedan will be introduced into the light car segment which has grown in volume by 33 per cent since 2005.

Sedans occupy 13.7 per cent of this segment, up from 7.9 per cent in 2005 for an overall increase of 73 per cent.

The production version of the City is manufactured in Thailand and will go on sale in Australia from February.