Honda is reportedly considering a compact SUV based on its next-generation Jazz light car, the latter expected to debut sometime in 2013.
According to industry paper Automotive News, the Japanese carmaker will use the crossover to help squeeze more than one million sales from the new Jazz platform.
Honda currently produces around 800,000 cars per year on the Jazz platform, including the regular Jazz, the City sedan, and the taller Japanese-market Freed mini-MPV.
Taking on the likes of the Nissan Juke - built on the same platform as the previous-generation Micra light hatch - the new crossover would give Honda a competitor in the growing compact SUV segment.
For now, the smallest global SUV in Honda's line-up is the CR-V - although, until last year, the carmaker's US range included the smaller Element SUV.
In Australia, rivals for the Jazz-based crossover would include the upcoming Holden Trax and Ford EcoSport, and, if Nissan Australia's planning comes together, the Juke crossover.