Honda mulls hybrid auto production

Honda Motor Co said Thursday it was considering building hybrid vehicles in China as Beijing aims to electrify the country's cars to fight pollution and reduce dependence on imported oil.

"Our partners (in China), as well as the government, are keen to move towards electrification," Chief Financial Officer Yoichi Hojo told a small group of reporters. "It's under consideration but we haven't decided anything yet."

The Nikkei business daily said Japan's second-biggest automaker, Honda Motor Co, would begin making hybrid cars in China as early as 2012, following in the footsteps of Toyota Motor Corp.

Hybrid cars have yet to become popular in China due to their high price tags, but the government is aiming to expand the segment through consumer subsidies in select cities.

The Honda Civic hybrid, already sold in China, and the Fit hybrid that debuted in Japan last month are among the models to be produced by Honda's two 50-50 joint ventures, with Dongfeng Motor and Guangzhou Automobile, the Nikkei business daily said.

Dongfeng plans to roll out hybrid and electric vehicles within two years.

Last year, Honda sold less than 300 Civic hybrids in China, the world's biggest vehicle market, and sales have fallen further, to 63 units in the first nine months of 2010.

The car costs 269,800 yuan ($40,420) with a 25 percent import tax.

Reuters