Many consumers are still wary of purchasing a hybrid, even in the midst of rising gas prices. This is mainly because of the cost of the hybrid itself. Before the rise of gas prices to significant levels, it has been hard for many consumers to justify buying one because the savings in gas wasn’t worth the high cost of the hybrid. But Honda has recognized this and is giving the consumers what they want.
Cheaper is Better
Honda has seen the need for cost efficiency in their already fuel efficient hybrids. In 2009, plans to roll out a hybrid for under $20,000 are underway. Currently, their hybrid model of the Civic runs for about $5,000 above the price of its normal, gas-only counterpart. The plan is to have the next hybrid generation be for only $2,000 more. This is certainly more doable in an economy that is watching gas prices soar.
Getting in the Market
Honda is also working on penetrating the market in a more sizable way by introducing other hybrid versions of their current vehicles, like the Honda Fit and a hybrid version of the old CR-Z.
Honda expects by 2010 for these vehicles to be available in their line. And the company also expects the sales of these hybrids to grow to at least one tenth of their overall sales. And I say “at least”, only because the threat of gas prices heading towards $10 per gallon and more has been reported in recent months. If gas prices go up to this amount, you can bet there will be a run on these fuel sipping vehicles.
How to Cut Cost
Honda is working on cutting costs by simply upping their production methods. So far, because these cars have not been produced on the massive scales of their gas “guzzling” predecessors, it has taken longer to get these hybrids built. This costs more money, but not for long. Honda is making improvements to its manufacturing facilities to make the process faster.
So the cost reduction to make these will be passed on to the consumer. These vehicles will be replacing their cost in fuel in no time with this improvement in price!