Japanese automakers are gearing up to launch new environment-friendly models after September, when the government's eco-car subsidy programme will likely expire.
The programme has boosted sales of hybrid vehicles and fuel-efficient gasoline vehicles, and automakers are now trying to add appealing new features to those models so sales will remain strong even when the subsidies end.
Nissan Motor Co. on Wednesday (July 28) unveiled a prototype of the hybrid Fuga, which the company plans to launch this autumn as it tries to catch up with Toyota Motor Corp., currently the hybrid vehicle market leader.
Honda Motor Co. will also launch a new hybrid vehicle this autumn, the compact Fit.
Nissan's Fuga is fuel-efficient and has performance matching that of sports cars. It is targeted at high-income, environmentally conscious consumers.
Equipped with a 3.5-liter engine and mileage of about 15 kilometres per liter, its design enables its motor to continue running even once the engine is stopped.
It is equipped with automatic transmission that reduces gas consumption when traveling at high speeds--an advance on many conventional hybrid vehicles, which have not performed well in terms of fuel efficiency over long distances at high speeds.
For better acceleration, the Fuga has a lithium-ion battery, which Nissan says provides faster charging and power output than nickel hydride batteries, which are used in other hybrid vehicles such as Toyota's Prius and Honda's Insight.
Honda, meanwhile, boasts of the affordability of its hybrid vehicle, the Fit. By using some of the same parts as the Insight, which was put on sale in 2009, the Fit is able to be offered for more than 500,000 yen less than the Prius.
While competitors have accelerated their efforts to launch hybrid vehicles, Toyota's Prius remains popular a year after its launch, with many customers waiting for delivery.
Toyota may launch a Vitz-class compact hybrid vehicle in as early as 2011 to compete with Honda's Fit.
Mazda Motor Corp. and Fuji Heavy Industries Ltd. will both receive technical help from Toyota as they develop hybrid vehicles for launch in 2012 and later.
Automakers assume that the consumer trend toward eco-cars, driven by increasing awareness of environmental concerns, will continue even after the government's eco-car subsidy program ends.
Honda President Takanobu Ito has said automakers "will be unable to survive" unless they drastically reduce their cars' carbon dioxide emissions.
Under such conditions, fierce competition to develop more appealing models seems sure to continue.
