Honda to Launch Two Locally Produced Hybrids in China

Honda Motor Co. plans to begin local production of two hybrid models in China this year.

The first vehicle, which is expected to debut this summer, is a hybrid version of the midsize Honda Accord sedan, The Nikkei reports. The car will be assembled using powertrain components imported from Japan by the company’s Guangqi Honda Automobile Co. Ltd. venture in Guangzhou. The facility already assembles conventionally powered Accords.

Honda also plans to introduce a China-specific hybrid SUV under its Acura luxury brand by about the end of 2016, according to the newspaper. The company began selling an imported hybrid version of the Acura RLX sport sedan in China in 2014.

The carmaker intends to add plug-in hybrids, which can travel farther in all-electric mode, by about 2020, The Nikkei says. The carmaker expects lower-cost local production will enable it to price both hybrids no more than 20% above their traditionally powered counterparts.

Honda targets combined sales of 20,000-30,000 units in China for the two hybrids in fiscal 2016. The company also hopes to expand hybrid sales to account for half its sales in the country by the end of the decade.