Green vehicles on the rise....

Go green with Prius in ’09

Lijee Philip & Boby Kurian MUMBAI/BANGALORE

FORGET the galloping fuel prices, just book your Prius. Japanese auto major Toyota is planning to launch the first mass-marketed hybrid car in India early next year. Hybrid cars, which use both petrol engine and electric motor, are usually fuel efficient and has lower emission levels , making them environment-friendly.
Toyota’s domestic arm, which does not have the required manufacturing infrastructure to roll out hybrid cars and unsure of the initial volumes, is likely to bring it in as CBUs (completely-built-up units), with an offering price of Rs 18-22 lakh.
High import duties — as much as 114% — on CBUs that Toyota intends to import will initially push up prices. While Toyota believes that there will be a demand for these cars due to their superior technology, low emissions and fuel efficiency, volumes will be low, making local manufacturing of the model unviable.
Toyota, which also manufactures Prius in the US and Europe, is unlikely to do so in India unless the government supports fuel-efficient and environment-friendly hybrid cars. A company official said that the domestic arm has not yet firmed up any plans to launch the hybrid car in India.
The Prius first went on sale in Japan in 1997 and is currently sold in more than 40 countries, with its largest markets being Japan and North America. Last year, Prius accounted for more than 40% hybrid sales in the US. Toyota and Honda are the leading manufacturers of hybrid vehicles globally, and Toyota Prius (launched 11 years ago) is the market leader. Worldwide cumulative sales of Prius in May 2008 crossed a million units. While Toyota chose to use a totally new brand name for its hybrid car, Honda elected to offer hybrid versions of its popular models such as Accord and Civic. Environmental concerns (and rising gasoline prices in the US) have spurred the sales of these greener cars.
Globally, the largest selling hybrid car plays in the upper end of the mainstream market, but finds its way into celebrity Alisters like Julia Roberts and Leonardo Dicaprio. And priced higher in India, the car is more likely to be a society tag for “being environment friendly, at least to begin with”, sectoral experts said.
Sources said Toyota may try to push for an early launch of Lexus, its premium SUV brand in India, which could see Prius introduction being pushed back a little. In 2008, Toyota is working on rolling out the new-generation Corolla priced competitive (slightly below) to Honda Civic.
Meanwhile, recent new launches in the mid-size segment like Suzuki SX4, Hyundai Verna, Chevrolet Aveo, Honda City are putting pressure on Toyota Corolla sales. While sales in this segment have been stagnant for the last few months, company officials indicate that’s due to constraints of capacity.
lijee.philip@timesgroup.com