Honda has delayed the production of hybrid vehicles in China

Honda officials recently told the media that Honda has decided to postpone the production of hybrid vehicles in China.

It is reported that Honda Motor Corporation was originally scheduled to begin mass production of hybrid vehicles in China in early 2014. However, on June 14th, Honda decided to postpone the implementation of the plan for producing hybrid vehicles in China for three years. Honda made this move in the hope that it could further deepen its cooperation with Chinese local parts suppliers to obtain cheaper parts from local Chinese parts suppliers to reduce the production costs of the models.

In a recent media interview in Beijing, Honda’s spokesperson said that Honda hopes to reduce the production costs of hybrid vehicles in China in order to increase the overall competitiveness of hybrid vehicles produced in China. China has become the world's largest auto market in 2009, but sales of hybrid vehicles in China are not very optimistic. Analysts pointed out that the demand for hybrid vehicles in the future Chinese market will greatly increase, because the Chinese government is currently encouraging the development and sales of new energy vehicles. Toyota and Honda, the leading brands of hybrid vehicles, have adjusted their production and sales strategies for hybrid vehicles in China in order to occupy market opportunities ahead of schedule.

Toyota plans to set up factories in China to produce batteries for gas-electric hybrid vehicles. The battery produced by Toyota will be supplied to other automakers. At present, the Chinese government provides tax concessions for consumers who purchase hybrid cars and electric cars, and encourages consumers to purchase new energy models.