The grade, based on the Si version, will be called Ci and will only be available to VAT-registered firms. It will not appear on price lists, has to be run by the fleet for at least a year and has a slashed P11d value in order to make its BiK proposition competitive. It is available with the 1.4 or 1.8 i-VTEC petrol engine or Honda’s 2.2-litre diesel powerplant.

Graham Avent, manager – corporate operations, said: ‘User-choosers are now actively seeking out more tax-efficient cars.

‘There is a real demand for fleet cars in the C-sector that offer tax savings for drivers, and the Civic Ci is our answer to that.’

Mr Avent said the model will be used to target drivers who consider sub-120g/km cars.

The firm has no models in that bracket, but Avent believes that by pricing the car from £13,660 for the 1.4-litre model, the tax bill will be low enough to attract drivers.

Honda claims a company car driver in the 40% tax bracket would pay £1,128 a year in tax contributions for the Civic 1.8 Ci, saving £261 a year over the current Civic Si (£1,389 a year).

Slashing more than £3,000 off the list price of the equivalent Si makes the car almost margin-less for dealers, although it will qualify for their volume bonuses.

Mr Avent claims the residual value setters are happy that at resale time it will achieve the same prices as Si variants. The car will not be badged Ci, although it will appear on the V5.