The Hindu Business Line : Honda Siel sees potential for hybrid cars in India

HONDA, one of the leading manufacturers of hybrid cars globally, sees the potential for introducing such part battery-powered cars in the Indian market too.

Honda Siel Cars, the Indian arm of the Japanese car company, feels that its future product portfolio could include hybrids, if the pricing can be got right with the support of the Government.

Mr Masahiro Takedagawa, President and CEO of Honda Siel Cars, told Business Line the current high duty structure is a deterrent for the import and sale of hybrids in India. He felt that if the Government offers incentives in the form of duty cuts or tax waivers, as is being offered in Japan and is being proposed in the US, hybrids will then become more affordable.

The current high import duties for imported cars will make hybrid cars unattractive, particularly since the same model (such as the Honda Civic) is also offered without the hybrid technology, unlike the past when hybrids cars were exclusive models and were not offered as variants driven by regular fuel. Mr Takedagawa felt that the fast maturing Indian market and the customer here are clearly showing signs of being eager to embrace new technology. With the increasing consciousness about environmental issues, the acceptance of hybrids will be much more. The point of contention will be the amount of premium that the customer will be willing to pay, he said.

The chief of Honda Siel Cars also pointed out that currently local manufacture of hybrids is not possible due to the sensitive nature of the technology, which does not allow shipping fragile components such as the huge battery pack, making it inevitable to import hybrid cars in the form of completely built units. Mr Takedagawa also said that hybrid technology would continue to be available only in luxury cars due to the current cost structure. But, with the increase in the number of hybrid cars sold, the technology could become cheaper and be made available for cars in the lower priced segments too.

Honda Siel Cars is showcasing its hybrid and fuel cell technology at the Auto Expo, which is set to open later this week. On display will be the Insight, one of Honda's first and exclusive hybrid cars. Also present at the Expo will be the FCX, Honda's fuel cell passenger car, the Civic, the next model that Honda is set to introduce in the Indian market and the company's Formula One racecar.

Hybrid cars are extremely fuel-efficient and better still are extremely low on emissions. The key to the growth in sales of hybrid cars has been these positive attributes. Hybrids achieve this through the use of complex electronics and powerful battery powered electric motors that power the car at slow speeds and at the same time route power back to the battery during deceleration.