Honda, a company which once heralded its entry to the diesel market by saying that it hated diesels, is now claiming to have an industry-leading four-cylinder turbodiesel engine.
The company's new 1.6-litre Earth Dreams Technology unit, which makes its debut in the Civic next month, develops 118bhp but offers potential fuel economy of 78.5mpg with CO2 emissions of only 94g/km.
That combination of performance and fuel efficiency betters anything on offer from any rival, says Honda. And it could lead to Civic sales being trebled in the UK next year, led by a huge surge in fleet business.
The low CO2 figure means a company car tax rate of only 13 per cent for business drivers and exemption from road tax for all buyers. Owners who drive in and out of London will also not have to pay the £10 weekday congestion charge.
Until now the only diesel available in the Civic has been a 148bhp 2.2-litre unit. But Honda admits there is a "mental block" about engines of 2.0 litres or more in Civic-sized cars.
"Diesel takes 80 per cent of corporate sales in this sector and 64 per cent of them are engines of 120bhp or less," the company says. "That market is now open to us."
Three out of every four customers for the new Civic diesel are expected to be fleet drivers and Honda hopes to capture business from more than 100 fleets. It has already concluded a deal to sell 40 cars to the Motor Neurone Disease Association.
"This is the most important new engine from Honda in a decade. In time 25 per cent of all the new cars we sell will be powered by this engine," said a Honda UK spokesman.
Honda plans to replace every engine in its range with new units under the Earth Dreams Technology banner within three years and is targeting fuel efficiency leadership across the board.
There will be further versions of the 1.6-litre diesel with lower and higher power outputs, five new petrol engines and a small-capacity petrol turbo to rival Ford's Ecoboost unit.
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