There should not be any regulation on the length of the car says Toyota and Honda

Toyota and Honda Motors, the very well known Japanese carmakers have asked the Indian government to change the existing policy of classifying a car as small that attracts lower taxes in the country.

Toyota is looking at a new second plant near Bangalore to make small car, which would rollout in the market probably in early 2011. Toyota also plans to make India its export hub for the proposed global small car project and export cars by 2012.

On the other hand, Honda Motor which operates in India through a joint-venture, Honda Siel Cars India (HSCI) has sought to make fuel efficiency and automotive safety as the sole criteria for small cars in India.

Honda Motors are also planning for launching a new small car in 2011-12 which will confirm to Indian government's current small car definition. Both Japanese companies have also asked the government to incentivise sales of hybrid vehicles.