Honda Motor Corp may delay its plans to produce hybrid models locally in China - the world's second-largest car market, it seems, is still not mature enough to welcome eco-friendly vehicles.
Liu Yuhe, the deputy general manager of Dongfeng Honda Automobile Co Ltd, said the Civic hybrid sedan will not go into production in 2009 as scheduled.
"It is partly because no detailed and preferential policies have been issued," said Liu. He said there was also a limited ability for car makers to reduce the high price of the cars and this meant a slower pace in the commercialization of greener cars.
He said the number of consumers in China who were taking active initiatives to look after the environment and save energy was still small.
Hybrid models, the world's most mature new energy vehicles, are powered by engines and batteries, consume less fuel and emit only water.
Chinese authorities have been collecting opinions from car makers and related automotive departments about incentives for new energy cars, business insiders say.
Whether the incentives should be offered now and which measures would be effective in making the cars acceptable for consumers are being hotly debated at present.
Honda started selling imported hybrid Civics at the end of last year to gather market reaction before beginning local production. The 1.3-liter model was priced at 269,800 yuan (US$39,550) with an annual sales target of 200 units.
Postponing the production will not change Honda's determination to bring hybrid technology to China and to realize local production eventually, Liu said without giving a timetable.
"If the market environment improves, new energy vehicles will still be promising in China given the opportunities," Liu noted.
(Shanghai Daily July 18, 2008)
