Honda Intends to Become Toyota’s Rival

In Tokyo in his year-end speech Takeo Fukui, Honda President proclaimed his company’s intention to become Toyota’s rival in the segment of hybrid vehicle production. In order to compete with Toyota’s leading role in this segment Honda is intending to invest much more funds in the development of hybrid technologies. Fukui thinks that the competition in hybrids is just beginning.

Honda is considered to be the second largest automakers in Japan. The first company’s step on the market of hybrid vehicles is to produce in 2009 a new small affordable hybrid. The sales target is expected to be 200,000 cars per year. However that’s not all and the company is intending to reach hybrid segment of 10 percent of the whole sales of Honda by 2010. this means that the company aims to achieve a a very aggressive target of more than 400,000 hybrid cars sold annually.

Recently Honda’s presence on the segment of hybrid production has decreased. In late 1999 the company introduced its first hybrid at the US automarket – it was Honda Insight. However this two-sitter was not popular at all so its production was stopped in 2006 because of low sales. In 2007 the same happened to a gas-electric variant of the company’s popular family sedan Honda Accord Hybrid.
However let’s remember phenomenal Honda’s success with the Prius. This hybrid vehicle firstly debuted in 1997 and since that time the company has sold nearly one million cars in many countries of the world. And the level of sales still remains strong.

However Hondas hybrids have many alternatives among other automakers - Toyota Camry hybrid, the best selling sport utility vehicle - the Highlander Hybrid, and Lexus brand hybrid models. Now GM also tries to become a member of hybrid production market however it is still behind the Japanese automakers. In 2004 Ford entered this auto market branch with its Ford Escape Hybrid but this company has not become the Toyota’s rival as well.

Honda has created in Japan a new research centre and invested there more than $425 million. Its aim is to develop hybrid and other alternative car technologies such as hydrogen fuel cells, the company intends to complete the centre by 2010.
Of course it is a great undertaking to challenge Toyota’s leading role at the hybrid world market. However, even now the company occupies the second place among the global automakers so it has a strong potential to put hybrid cars on the road.
Honda also has a great experience of work in this research branch, in production unique models – so the company knows precisely what consumers like and what they do not like what they want to drive and do not want. This will help the company to achieve its large aims in future.
[VIA: hybridcars.com ]