Honda Motor plans to assemble hybrid vehicles in China as emissions regulations tighten, according to a Japanese media report.
The automaker will start with the hybrid Accord, according to the Nikkei business newspaper.
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It said Chinese emissions regulations are expected to be as strict as those of developed countries by 2020 while the average fuel economy of new cars likely will have to be 20km/litre of petrol.
Local joint venture Guangqi Honda Automobile will handle production, with key components such as motors and batteries shipped from Japan initially. Prices have yet to be set, but the plan is to keep them no more than 10-20% higher than petrol versions, the paper said.
Production of a hybrid Acura SUV exclusively in China starting as early as this year is also expected. Nikkei said fiscal 2016 Chinese production of the pair of hybrids is expected to be 20,000 to 30,000 units. The automaker also intends to introduce plug-in hybrids, which it expects will qualify for subsidies, around 2020.
Honda previously sold a Japanese built Fit [Jazz] hybrid in China but sales were limited due to the high price of about CNY180,000 (US$27,378) – more than double the price of petrol car made in China.
Toyota had a rocky start with hybrids in China, too, assembling the second generation Prius, but did not build the third generation there as sales were slow due to high pricing.
