Honda has the opportunity to produce hybrid models locally in China

A few days ago, Honda Motor Co. disclosed the news that the core components of the IMA hybrid system may be produced in mainland China. According to the explanation, Honda China’s Minister of Agriculture, Kurashiki Seiji, stated that at present, the yen is high, and the combined components of IMA hybrid systems such as electric motors and batteries have to be considered for production in mainland China. During the same period, news revealed by Honda’s headquarters indicated that Honda will produce hybrid vehicles in mainland China in the next three years. However, parts such as electric motors and batteries will be purchased from Japanese imports.

According to earlier reports, Honda will introduce five hybrid models including its Insight, CR-Z, Fit HV, and Civic HVs to its main hybrid models in the Chinese market in 2012. However, on the current domestic market, HV sales are still underestimated, and the imported HV models are even worse. The main reason is that they need to be criticized for high selling prices and policy pressures. Then, the practice of using the HV system for on-site production will effectively control the cost of the next five Honda hybrid models. According to this speculation, as a transitional HV model will have a chance to usher in a small spring in mainland China. However, with regard to the recently revised subsidy policy of the HV model, the development of environmental protection vehicles is still a long way to go.