A new, highly efficient 140PS 1.8-litre petrol engine is going into the FR-V, Honda’s compact people carrier.

The engine promises a low tax band for company car drivers. In the Civic it is rated at 15%.

The new engine replaces the existing 1.7- and 2.0-litre units. The economical 2.2-litre turbodiesel continues.

Inside the interior has been upgraded with new materials. A new boot light provides extra convenience.

The new model FR-V, with its 3+3 seating, goes on sale early 2007.