Could borrow its engine from the Vezel.
Honda will launch the new City in its home market in Japan on December 1 with several market specific changes. The first and foremost is that the sedan will be called the Honda Grace in Japan, and the next being its powertrain.
For the Japanese market, Honda say the Grace will get a Sport Hybrid motor coupled to an i-DCD (dual-clutch transmission). The Grace will be offered with front wheel drive and 4WD.
The exterior of the Grace sees minor changes in comparison to the Indian model. The front fascia gets an additional chrome strip and a mildly revised bumper for better aerodynamics. Certain variants of the Grace will be offered with 15- or 16-inch aluminium wheels with a similar design seen on the Civic Hybrid when it was available in India.
The rear sees LED taillights and the combination clusters get a clear lens treatment. Aside from this, all variants of the Grace save for the base trim will get LED headlights. Inside, the cabin is identical to that of the City's save for the stubby blue gear selector (seen in most of Honda's hybrid cars sold in Japan) and the instrument cluster which gives out information on the status of the battery.
The Japanese model is loaded with features likes VSA (Vehicle Stability Assist), hill start, heated front seats, city braking system, side and curtain airbags.
Honda haven't released information on the Grace's engine yet. However, it could borrow the 1.5L Hybrid engine from the Vezel which makes 132 PS (130.14 bhp).