Japanese auto major Honda on Tuesday launched Honda Accord hybrid priced at Rs 37 lakh (ex-showroom Delhi) competing directly with rival Toyota’s Camry Hybrid which is priced at Rs 30.9 lakh (ex-showroom Delhi).
Evolved over nine generation, Accord Hybrid has a 2-litre petrol engine combined with two electric motors. It has a fuel economy of 23.1 km per litre. India is only the sixth country globally where Honda has launched the Accord Hybrid since its debut earlier this year.
“Hybrid is the technology for future... We are ready to harmonise the need for human mobility and taking care of the environment. We would like to work with the Government,” said Honda Cars India Chief Executive Yoichiro Ueno
Ueno mentioned the superior hybrid technology of the Accord Hybrid to explain the price disadvantage it faces against the Toyota Camry Hybrid which costs almost six lakh rupees less. “We have to import the vehicle as a Completely Built-Up (CBU) unit and we face the disadvantages that involves.” CBU vehicles do not get any financial incentives under the Central Government’s FAME scheme for Electric and Hybrid vehicles. Because the Toyota Camry Hybrid is assembled in India, it not only attracts lower excise and countervailing duties but also a slight subsidy. The Honda Accord Hybrid, however, will attract a lower rate of Value-Added Tax (VAT) in Delhi which Ueno says has been passed on to the consumer.
One reason Honda Cars India is not considering assembling the Accord Hybrid in India is because any assembly would involve significant retooling at Honda’s manufacturing facilities. “This is because of the car’s length, we will need to ensure big volumes before we start assembly”, Ueno said. Quizzed as to what numbers those were, he said that annual volumes would need to touch around 10,000 units a year.
Ueno also added that Honda has some interesting hybrid small cars which the company could consider launching in India. “These cars are more expensive than standard cars, but if there is consumer acceptance of such products which are very economical and less polluting we could definitely consider bringing them to India.”