A modern transmission, competitive engine and sufficient demand from Australia are set to boost Thai assembly prospects of Honda's flagship compact saloon

Honda is set to assert itself as a drivetrain specialist by becoming the first Japanese carmaker to offer DSG (Dual Shift Transmission) in a production model.

Slated to appear in the forthcoming Civic Type-R to be sold specifically in Asia-Pacific markets, the advanced gearbox will be similar to that developed by the Volkswagen Group.

Such a move will boost demand for the Type-R in this region including Thailand where motorists prefer to do away with the conventional clutch pedal.

And as revealed for the first time in Motoring (Sept, 22), a plan to build the Type-R in Thailand alongside the mass-selling Civic has become even sounder as Australia - major export market for Thai-made Civics - is showing demand for it.

Unlike its rivals (see sidebar at right), Honda wishes to make the Type-R as competitive as possible around the globe by building it at four different locations namely the UK, US, Japan and Thailand.

The Type-R sold in the US (two-door coupe and four-door saloon) and Europe (three-door hatchback) only comes with manual gearbox.

With a high-revving, normally aspirated 2.0-litre engine, performance is claimed to be seamless and fluid with DSG transmission. DSG uses twin automatic clutches to ensure quicker shifting than other gearboxes available.

It is not to be confused with those ubiquitous Tiptronic-style automatic boxes with torque convertors, or those automated manuals derived from F1 racecars and transferred to road-going exotics like those of Ferrari.

The DSG unit is currently available only in the Audi TT, VW Golf GTi and Bugatti Veyron and is now under consideration by sports car specialists like Porsche and BMW.

Like the other Type-Rs sold elsewhere, the Asian version uses a 2.0-litre four-cylinder motor with the latest in variable-valve timing producing around 220hp. In the US, power is rated at 197hp and in Europe 201hp.

Sources close to Honda's R&D unit in Japan told Motoring that DSG is confirmed for the all-new Type-R that will be unveiled in Japan before mid-2007.

The decision to make the Type-R on different bodies is to lower production costs as much as possible at the various worldwide factories.

As seen in these first official pictures, the Asian Type-R uses many similar panels and parts like the lights with the 1.8 and 2.0 variants and is merely distinguished by visual add-ons like aerodynamic kits, badges and wheels.

Actually, the Type-R you see here was used as a pace car in the Japan Formula Championship this month.

Technical details are scarce about the production model. But sources say the chassis will be beefed up, including stronger brakes, stiffer suspension and an electric steering system that yields an "almost identical feel" to hydraulic counterparts.

While Thai assembly for the Type-R is highly likely due to demand from Australia, it still cannot be confirmed whether it will be sold domestically despite similar homologation in Thailand and Australia.

Motoring understands that Honda Automobiles Thailand wants to ensure that its nationwide dealers can handle sales and servicing of the Type-R before deciding to sell it in the country.

The Thai retail price will largely depend on how many Type-Rs will be made at Honda's facility in Ayutthaya. An earlier business case suggested 100 per month with each costing under B1.5m in showrooms.

At such a price, the Type-R would still be competitive as no rivals can match it for value in terms of performance.

Currently, there is no car with over 200hp sold at no more than B1.5m in Thailand.