Honda will introduce five hybrid models in China

In anticipation of a surge in demand for fuel-efficient vehicles in China, Honda Motor Co. announced that it plans to produce hybrid vehicles in the country within two to three years. The Japanese automaker will initially sell only imported vehicles when it launches five hybrid models including the Insight and Fit models. But it will later on begin local final assembly to reduce prices. Honda is also looking into the local production of batteries and motors. The Chinese government is expected to impose stricter mileage requirements than those imposed in Europe and will most likely require foreign automakers to transfer environmental technology. There is concern that because of tougher fuel efficiency requirements, technologically inferior Chinese car makers may be forced out of the market. (September 14, 2011)