The Japanese market-only model is based on the Honda Fit.
Honda is previewing a new Fit-based hybrid sedan in Japan. Called the Honda Grace, it rides on the same platform that underpins the latest Fit and the upcoming HR-V crossover.
Honda has yet to release any specifications, but has created a page for it on its Japanese website. The exterior is identical to the Honda City, a standard petrol-powered sedan currently sold in select Asian countries (but not Japan). A blue highlight on the grille separates it from the City, but otherwise it looks every bit the City's twin.
Optional twin-projector LED headlights and LED taillights indicate that it will have be more upscale than the City, with all the creature comforts Japanese customers would expect from a similarly priced Fit. However, it would seem that the Grace is a hybrid-only model.
Though Honda promises more info as the Grace's December 1 release date draws nearer, it has revealed that it will employ Honda's i-DCD (intelligent Dual Clutch Drive) hybrid unit. We can probably safely assume that it will be identical to the Fit and Vezel (aka HR-V) Hybrid's powertrain, which combines a 30hp electric motor sandwiched between a 108hp Atkinson-cycle gasoline engine and a 7-speed dual clutch transmission.
In the Fit, the system can return up to 65 to 86 mpg, depending on options, while the larger Vezel gets 51 to 64 mpg. Expect the Grace to slot somewhere in between.