Honda is planning to launch a compact crossover version of the Jazz. Well placed sources have told Japanese analysts that the model will be targeted primarily at Europe and the US, and it is hoped up to 400,000 units per year could be produced.

The new model will be spun off a next-generation version of the Jazz, due by the middle of the decade. Unlike with previous Jazzes, Honda is giving its regions greater autonomy to engineer the Jazz outside of Japan to suit local markets.

The European version of the crossover is likely to be built at Honda’s Swindon plant in order to negate the strength of the yen.