Japanese Carmakers intend to export their hybrid models to emerging countries like India and China, anticipating these countriesâ€™ growing appetite for environmentally friend models, especially among the wealthy.
Honda Siel Cars India Ltd., Hondaâ€™s subsidiary located in India, plans to import the Civic Hybrid to the country, although it is still waiting for government approval.
The Hondaâ€™s subsidiary had almost 4 percent share of the Indian passenger car market for six months to September, according to Nikkei. Its operations are focused on sedans, which are luxury cars for India. Honda also plans to sell the Civic Hybrid in China by the end of the year, according to sources familiar with the matter.
High tariffs on vehicles imported into emerging countries presents the largest obstacle for adoption, however. For instance, Civic Hybrid may cost 5 million yen ($42,000), almost double the price in Japan.
Toyota Motor Corp., on the other hand, has been selling the Prius, its hybrid, since December 2005. Although the price is over 4 million yen ($30,000), 1,700 units of the model were sold in 2006.
Japanese carmakers are taking initiative in BRICs markets â€“ Brazil, Russia, India, and China - because it is anticipated that the competition in these market will be fierce in near future.