Honda will have two model choices to take company car drivers below 100g/km of CO2 in 2012 with confirmation of a new 1.6-litre diesel engine, and a facelift for the Honda Insight hybrid.

The 1.6-litre diesel is a response to fleet customers urging the manufacturer to produce a diesel engine smaller than its current 2.2-litre unit.

The engine will become available in the Civic late in 2012, with order book opening in the first half of the year.

It produces 120bhp and 221lb-ft of torque, and will have CO2 emissions from 95g/km, which will see it exempt from Vehicle Excise Duty and eligible for a full discount on the London Congestion Charge.

The engine, which will be built in the UK, has also been confirmed for the next-generation CR-V, also due to be launched in 2012, while it is also likely to appear in the next-generation Accord in 2014.

The revised Insight will appear in January and offer CO2 emissions between 96g/km and 99g/km, depending on the version chosen. This car will also qualify for a London Congestion Charge discount, and zero VED.

All Honda hybrids used to qualify for the congestion charge discount until the rules were changed from January 2011 so that only sub-100g/km cars would be eligible.

It meant that newly registered versions of the Jazz hybrid and Honda Insight, with CO2 emissions of 104g/km and 101g/km respectively, would have to pay the charge.