Bring on the Hybrids- But who is going to Buy one?

If Toyota had even thought about bringing the Prius to the Indian markets then this latest development would have snuffed out even that remote possibility.

Our neighbours China have not taken too well with hybrids and in the third year of sales of the Toyota prius sales have fallen drastically[81%] this despite the fact that in the more developed markets the Prius is doing exceptionally well and is even becoming the favourite amongst fleet owners.

So what's so different in the emerging markets.Lets start with cost ,in the emerging markets after all the duties and taxes the hybrids cost as much as twice as what they do in the developed markets.Which buyer would go in for the civic hybrid at Rs.20 lakhs[approx $50,000] even if it has a Honda badge.Then as I have always been pointing out there is the diesel option.I just cannot see any justification in Hybrids[petrol] commanding such an exhorbitant premium over diesels.And to top it all diesels are now more fun to drive as well.

Would be interesting to see how Honda and toyota go ahead with their hybrid plans in emerging markets.But unless the prices of hybrids come down significantly in markets where it matters the most toyota's dream of selling a hybrid version of each of its product line-up would remain just a dream.

Budget 2008 impact -Hybrids,buses and small cars to become cheaper

Honda India must be having a smile on their faces,the lobbying by Japanese manufacturers has worked.Hybrid cars are all set to get cheaper.Excise duty has been cut from the present 24% will come down to 14% and the first real beneficiary is none other than Honda with concrete plans to launch the Civic hybrid in a year or two.

Although not much is been said about development of infrastructure,atleast some cheer in the form of reduction in excise duty on Buses.

Small cars,two wheelers and three wheelers would be marginally cheaper with an excise duty cut to 12% from the present 16%.Good news for the Tata Nano.

A Small car is defined as petrol car with an engine capacity not exceeding 1,200 cc and not exceeding 4,000 mm in length, or diesel car of engine capacity not exceeding 1,500 cc and not exceeding 4,000 mm in length.

Its really puzzling that when it comes to the Maruti Swift[petrol],the largest manufacturer in India is not taking advantage of this facility and providing a lower engine variant for the Swift petrol,the diesel already qualifies as a small car.

Update:Hyundai motors india,are the first to announce a price cut,they say small cars prices could come down by as much as Rs.10,000-15,000.What interests me is by how much the prices of the Skoda fabia will come down by simply because its present price tag means the cut would have the most significant impact if implemented.Gm too has decided to cut prices of the spark and the U-VA.

I salute Hyundai India for being so proactive and ensuring the benefit of the customers being the first manufacturer to announce a price cut.

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Price cuts announced by Car manufacturers