Honda Motor Co, whose fleet of vehicles is rated the most fuel-efficient in the US, will introduce an all-electric car and a plug-in hybrid in 2012 as rival carmakers threaten its leading position.
The automaker, Japan’s second-largest, also plans to sell a 500,000 rupee (US$10,600) car in India next year, chief executive officer Takanobu Ito told reporters yesterday in Saitama Prefecture, north of Tokyo.
Honda joins domestic competitors Toyota Motor Corp and Nissan Motor Co in announcing plans for plug-ins and battery- powered cars as governments tighten rules to cut vehicle emissions. In California, the most populous US state, the largest carmakers by volume must sell about 60,000 plug-in hybrids and electric cars combined from model years 2012 through 2014, according to the state’s Air Resources Board.
“The most surprising news was that Honda is introducing electric vehicles,” said Satoru Takada, a Tokyo-based analyst at TIW Inc. “It was the right move for Honda to make the decision now.”
Honda’s lead in fleet-average fuel efficiency has been narrowed by carmakers including Ford Motor Co and South Korea’s Hyundai Motor Co. Nissan, Japan’s third-largest automaker, will roll out its first lithium-ion battery-powered car, the Leaf, this year in Japan, the US and Europe.
Nissan CEO Carlos Ghosn predicts electric vehicles will account for 10 percent of global car sales by 2020. By contrast, Ito said electric cars won’t reach a mass-market level of demand for 20 to 30 years and that plug-in hybrids are more “realistic” in the short term.
Honda’s all-electric model will be used for short-distance commuting, Ito said, declining to provide additional details.
Honda fell 1.8 percent in Tokyo trading to close at ¥2,605 before Ito’s remarks.
Honda’s current hybrid line-up includes the Insight and Civic compacts and the CR-Z sporty coupe. Honda plans to sell a hybrid version of the Fit compact later this year.
The carmaker has failed to match Toyota’s success with hybrid cars. The Prius, the world’s top-selling hybrid, outsold Honda’s Insight 6-to-1 in the US this year through May.
Honda will introduce a Civic hybrid powered by lithium-ion batteries within a year, Ito said.
The carmaker has previously said it plans to introduce lithium-ion versions of the Civic and Acura luxury models. Lithium-ion batteries can store as much as twice the energy of nickel-metal hydride batteries that power Toyota’s Prius and Honda’s hybrids.
A low-cost car similar to the one being planned for India will also be sold in Thailand, Ito said.
The automaker also aims to build a new motorcycle plant in Indonesia next year with capacity to make 500,000 two-wheelers a year.
In Japan, Honda will start minicar production at its Suzuka plant in 2012 and output at its Yorii plant in 2013, Ito said.
Yachiyo Industry Co, Honda’s 50 percent-owned subsidiary, has canceled plans to construct a new factory. Minicar production at Yachiyo’s existing plant will be continued, Honda said.
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