The Nihon Keizai Shimbun (Japanese lang. only) reported earlier today in Japan that Honda (HMC) is planning to roll out a low-cost hybrid version of its sub-compact Fit model. It is expected to be completed and ready for sale in global auto markets from 2007.
This is a huge move for Honda -- which like rival Toyota ( TM ) has until now been focusing its hybrid technology on mid- and larger-sized sedans -- because it will be first to market with a hybrid that is in the US$10,000 range or essentially the first under ~US$20k. Honda reportedly has plans to export the hybrid Fit to the EU and US while it is considering whether to make it available for sale in China and other Asian countries.
If high and potentially higher gasoline prices are here to stay then without a doubt this is a wise aggressive and strategic move by Honda to grab hybrid auto market share from Toyota while leaving Nissan (NSANY) and other larger global rival autos that don't offer hybrid technology (or have inferior tech) in the dust.
Comments regarding the hybrid Fit were unavailable from Honda and its investor relations site.
HMC 1-yr chart:
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