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Honda expands in Shrinking Auto Market
Filed under: Miscellaneous, Honda Civic, Sedans, Hybrid
Honda is planning on introducing a hybrid version of the Fit while continuing the gas-electric version of the Civic. They hope to sell around 500,000 vehicles of four models a year by the mid-2010’s.
In order to accommodate the new vehicles, the Japanese automaker seeks to build two additional plants, coughing up 1.5 billion dollars, as part of its grand plan for stepping up hybrid production. Both plants will be in Japan, with one dedicated to building hybrid gas-electric engines, and the second a manufacturing plant. They are expected to be completed in 2009 and 2010 respectively.
As consumers repeatedly take bites out of their paychecks to afford gasoline, they are increasingly turning to methods to save fuel. Many don’t seem to consider taking up jogging, biking, or walking as alternatives, or just not going anywhere on the weekends. Hybrids, being less gluttonous than most vehicles, have garnered much more attention recently since people don’t seem to consider their own two legs good enough. Nonetheless, petrol-electric vehicles are still only a small percentage of owned cars, and more expensive than normal cars.
Honda’s goal is to reduce the premium consumers would have to pay from about 500,000 to 200,000 yen (1,800 dollars).
Honda Motor president Takeo Fukui stated in a press conference, their hybrid would “be equipped with the full functions of a car and at the same time offer price competitiveness.” He also stated that Honda preferred to stay out of the competition for making the cheapest car on the market. India's Tata currently holds that honor with a $2,500 car.
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