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Tokyo Motor Show set to dazzle with latest hybrids

This file photo from 2003 shows journalists gathering around Toyota's concept vehicles during the press preview of the 37th Tokyo Motor Show in Makuhari, suburban Tokyo. Japanese automakers, already making significant inroads into key overseas markets, are hoping for a new wave of success as they show off their latest models at this year's 39th Tokyo Motor Show, which opens to the public on Oct. 22. PHOTO: AFP

Japanese automakers, already making significant inroads into key overseas markets, are hoping for a new wave of success as they show off their latest models at this year's Tokyo Motor Show, from fuel-efficient hybrids to luxury saloons and futuristic concept cars.

But while cutting-edge prototypes may steal much of the attention at the annual show -- where 79 new models are set to be unveiled -- the real battle will be fought over mass-market models.

"The focus of the show is not likely to be on dream concepts," said Koichi Sugimoto, auto analyst at Nomura Securities.

"People are interested more in what automakers will do to increase their sales and to improve their businesses," he said.

With gasoline costs soaring, Japanese automakers are struggling to keep pace with demand for gas-electric hybrids, particularly in North America.

Toyota, aiming to steal pole position from US rival General Motors (GM), will showcase a concept model with fuel-cell and hybrid technologies as well as the luxury Lexus brand, which it introduced in Japan this summer.

Mazda will display the Premacy Hydrogen RE Hybrid concept -- featuring a rotary engine with an electric motor that uses both hydrogen and gasoline -- at the show, which opens to the media on Wednesday and the public on Saturday.

From Honda comes a sedan with a small, high-power fuel-cell unit, combining fuel efficiency with a large interior.

And for drivers fed up with backing into tight parking spaces comes Pivo, a three-seat electric concept car from Nissan with a 360-degree rotating cabin.

With little scope left to boost domestic sales, Japanese automakers are increasingly setting their sights on overseas markets, said Tatsuya Mizuno, an auto sector analyst at Fitch Ratings Tokyo.

"The Japanese domestic market is mature, so there is little room for expansion here. But in the US, Europe and China there is still significant room for Japanese automakers to expand their market share," he said.

Japan's carmakers have already been so successful recently in North America, particularly with their hybrid designs, that some have set prices higher to give a chance to US automakers and preempt a political backlash.

While Toyota, Nissan and Honda notched up record sales in the US last month, US giants GM and Ford suffered a slump.

Hybrids are now so popular that there is a waiting list for new buyers and with oil prices close to record highs, demand for Japanese automakers' fuel-efficient models is likely to increase, Mizuno said.

"In the US market, the share of Japanese automakers exceeds 30 percent and is still growing. It may reach nearly 40 percent within seven years," he said.

The Tokyo Motor Show, which is expected to draw 1.5 million visitors and 239 companies from 13 countries before it closes its doors on Nov. 6, may also provide a springboard for new industry alliances.

Manoeuvres are already under way as GM backs out of a partnership with Subaru to allow rival Toyota to step in -- a deal seen by many as a move by Japan's largest automaker to lend a hand to its troubled US competitor.

"There is a major shift taking place among automakers about who is going to cooperate with whom. The show might provide a forum for automakers to look for potential future partners," said one analyst who asked not to be named.

The show is also set to feature plenty of high-end models as an economic recovery helps Japanese motorists rediscover a taste for luxury, with Toyota pitting the Lexus against established brands.
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