The new Honda Logo is scheduled to sell between 4,000-5,000 units a year, but its success or failure will be a key factor in Honda's plans for further expansion in the UK market.

##232Logo--left## The company says Logo is a “market research exercise” to help Honda learn about the B-sector - a segment it will enter in earnest in two years.

Honda's Swindon factory will start building a new supermini from 2002 to complete the model line-up, taking it into the most competitive slice of the European market.

Logo is launched with a 1.3-litre engine and one body style - a 3dr hatchback. There will be two models - a five-speed manual and a CVT automatic, both priced £9,495.