Honda  has begun sales of the all-new Grace hybrid sedan at dealerships across Japan. The Grace is equipped with Honda’s Sport Hybrid i-DCD one-motor hybrid system that enables the driver to start in EV mode and realizes fuel economy of 34.4 km/L (81 mpg US or 2.9 l/100 km) under the JC 08 mode—best among all hybrid sedan models in the Japanese market.

The Sport Hybrid i-DCD is also applied in the Fit and Vezel hybrids, and earlier had been the subject of three recalls due to separate problems with its &-speed DCT.

Also, for the first time as a compact hybrid sedan in this size category, the all-new Grace offers a 4WD version in its lineup. Honda’s monthly sales target in Japan is 3,000 units.

The SPORT HYBRID i-DCD system combines a 1.5L Atkinson cycle DOHC i-VTEC engine, 7-speed DCT with built-in high-output motor and the IPU with a built-in lithium-ion battery.

The all-new Grace features the Advanced Compatibility Engineering (ACE) body that applies Honda’s original G-Force Control Technology (G-CON) to enhance self-protection and make it less aggressive to other vehicles in the event of a collision. The Grace also features the Pedestrian Injury Mitigation Body structure to absorb the impact of a collision in the front part of the body, which is at the highest risk of causing a pedestrian injury in the event of a collision.

In the area of active safety, with the goal to prevent an accident before it happens, the all-new Grace features the Vehicle Stability Assist (VSA) system; a Hill-Start Assist function; as well as the Emergency Stop Signal (ESS) system that warns vehicles following behind of a sudden stop. These active safety functions are featured as standard equipments on all types.

The “safety package” that combines the City-Brake Active system that is designed to help drivers avoid rear-end collisions while driving at the speed of below 30 km/h (18.6 mph), with a side curtain airbag system and a front seat i-side airbag system (variable capacity type) is available on certain types.

Pricing starts at ¥1,950,000 ($16,436).