The Hindu Business Line : Honda launches Civic Hybrid; to cost Rs 21.5 lakh

Rs 21.5 lakh car: The President and CEO, Honda Siel Cars India Ltd, Mr Masahiro Takedagawa, at the launch of 1.8-litre Honda Civic Hybrid in the Capital on Wednesday. The car is equipped with a petrol engine and an electric battery. Honda said that the Civic Hybrid would cost Rs 21. 5 lakh (ex-showroom Delhi) considering the import duty on a completely built unit stands at 104 per cent. The company will be importing the CBU from Japan. However, it is also exploring alternatives through which it can import the engines and parts and bring the car as a semi knocked down unit.

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New Delhi, June 18 Japanese car maker Honda Motor Co on Wednesday introduced the first hybrid vehicle in the country by launching its sedan Civic, equipped with a petrol engine and an electric battery.

Honda said that the Civic Hybrid would cost Rs 21.5 lakh (ex-showroom Delhi). The import duty on a completely built unit (CBU) is 104 per cent. The company will import the CBU from Japan, where it produces the hybrid car for its global markets. However, it is also exploring alternatives through which it can import the engines and parts and bring the car as a semi-knocked down unit.

“Currently, we cannot import the engine and components and assemble it as a semi-knocked down unit. But it is a difficulty that we want to overcome as it is always better to bring a car as a semi-knocked down unit than a fully imported car. This is because the duty is less,” Mr Masahiro Takedagawa, President and CEO, Honda Siel Cars India, told Business Line at the sidelines of the launch.

The company said that it did not expect to sell high volumes, but wanted to make a statement of its technology and commitment to the environment. Honda has imported around 130 units and expects to sell around 300 during the year, said Mr Jnaneswar Sen, Vice President, Sales and Marketing.

No made in India

Mr Takedagawa ruled out the possibility of making the Civic Hybrid in the country as the company does not produce it even in the US, the largest market for cars. The Government levies an excise duty of 14 per cent on hybrid vehicles to encourage local production when compared to premium and luxury cars, which attract a 24 per cent excise duty .

The Civic Hybrid would be offered with a 1.3 litre petrol engine. From the time of the start-up and acceleration, both the engine and the motor function together. Only when the car is being driven at a high speed that the motor does not work and the vehicle is run on the engine. When the car is idling , the petrol engine automatically stops and the battery keeps the vehicle running, saving fuel. The car when being driven at 40-50 km per hour, operates only on the battery offering maximum fuel efficiency.

According to the company, the fuel efficiency of Civic Hybrid is in the range of 19-23 km a per litre when measured with the existing petrol based model, that offers approximately 15 km per litre.

Asked about the company’s plan to introduce hybrid engine hatchback in India , Mr Takedagawa said, “Globally, we are launching a hybrid hatchback next year. But in India, we are concentrating on the Civic Hybrid and will see the response before we launch other variant or models.”