HONDA PROMISES THAI HYBRID, AWAITS TAX BENEFITS

       Honda Motor president Takanobu Ito has confirmed the launch of a hybrid car in Thailand, although he did not disclose which model and when it would be sold.
       "Hybrid vehicles need incentives from governments. Sales of hybrids are high in Japan because the government gives special tax cuts. We must see the tax benefits given by the Thai government," Ito said at the 41st Tokyo Motor Show yesterday.
       Honda would have four hybrid models to choose from. The most popular is the Insight, which has seen impressive sales figures in Japan and other developed countries.
       The next likely vehicle is the Civic. The next smaller option is the Fit, set to be launched in Japan next year.
       Finally there is a model Honda has not revealed yet, although it has said the car will be larger than the Civic and the Insight. It is possible this will be the Accord Hybrid.
       A Honda Automobile insider said if the company was going to sell a hybrid model then it wanted it to be accessible to many people.
       "There is no point having a hybrid product that cuts CO2 by 50 per cent but is driven only by 1,000 people. A product like the hybrid can be considered a success only when it is used by many people," he said.
       This hints that Honda is planning a hybrid in the mass-market segment. Launching a product like the Honda Accord will not help, as it would be in direct competition with the Camry. A vehicle the size of the Accord also could not generate large sales.
       Toyota said it plans to sell 4,000 hybrid Camrys by year-end.
       At the Tokyo Show, Honda displayed various electric vehicles under the concept HELLO, which stands for "Honda Electric mobility Loop". They included the EV-N concept car along with motorcycles and other personal mobility vehicles.
       On another stand was the CR-Z hybrid, which will be sold in Japan, the US and Europe next year. The production model will make its world premiere at the Detroit Auto Show in January. This model will unlikely be considered for the Thai market due to its sporty nature.
       Ito said Thailand was a very important production base for Honda no matter what political uncertainty the country faced. "This importance is shown by the fact that the PCX scooter will be produced at our motorcycle plant in Thailand. It will be the first country where the model will be launched and from there it will be exported worldwide.
       "We have also established a motorcycle R&D centre in Thailand. An automobile R&D centre will also be opened soon," he said.
       Honda Thailand has revised its sales forecast upwards by 5 per cent to 84,000 units this year, due to the increased popularity of smaller cars and the government's economic stimulus package.
       For the first nine months, Honda has sold 62,999 vehicles, only 1.5 per cent down from the same period last year. Honda is the auto brand that has been least affected by the economic downturn due to its strong passenger car line-up.