Hybrid war to rock car market
The Honda Insight, left, and the Toyota Prius. Provided by the company
Backed by a government plan to provide 3 million won ($2,386) in tax breaks to people purchasing hybrid cars starting in July and a growing interest among consumers in environmentally friendly products, the industry is expecting hybrid car sales to contribute to overall vehicle sales.
With their local release dates scheduled for earlier than those of their Japanese rivals, Korea’s Hyundai Motor and its affiliate Kia Motors are likely to have a head start over Japanese automakers Toyota and Honda.
This year is particularly significant for Japanese companies as sales in the domestic market have been falling sharply due to the appreciation of the yen against the local currency.
Hyundai Motor is unleashing a hybrid vehicle that runs on liquid petroleum gas in July while Kia Motors’ hybrid will be on the market two months later.
Toyota, manufacturer of the Prius, the world’s first hybrid vehicle, is hoping to release its latest Prius model in Korea in October at a price of 2 million yen (26.4 million won, $21,000).
That’s comparable to the expected price of the Hyundai Avante hybrid at 18 million won and the Kia Forte hybrid at 23 million won.
The fuel efficiency of the Japanese hybrid is around 26 to 27 kilometer per liter. This is far more advanced than the fuel efficiency of Hyundai’s Avante LPG hybrid or Kia’s Forte LPG Hybrid at 18 kilometers per liter.
Japanese automakers began producing hybrids 15 years ago, giving them a technological edge over their Korean counterparts, which only entered the market in recent years.
For this reason Korea companies are focusing on the manufacture of LPG hybrids, which are less expensive to make than the gasoline-fueled hybrid models of their Japanese counterparts.
Honda is planning to introduce its hybrid car, the New Insight, later this year. The vehicle has been selling in Japan since February and currently retails for 1.8 million yen. Like the Toyota Prius, the Insight’s fuel efficiency rating is outstanding. It gets 23 to 24 kilometers per liter, which is double the fuel efficiency of most midsize vehicles.
By Lee Ho-jeong [ojlee82@joongang.co.kr]
with the Korea JoongAng Daily
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