Honda Hybrid to Target Korea

Honda plans to begin selling hybrid cars for the first time in South Korea by introducing the Accord Hybrid sedan in the second or third quarter of 2006.

The move is expected to lead Korean carmakers, such as Hyundai Motor and Kia Motors, to an earlier-than expected sale of hybrids. Hyundai is still a couple years away from marketing hybrid cars of its own.

“We will unveil the hybrid model in June. Motorists will meet the new cars by July or August,” a Honda Korea representative said.

Buyers of the gasoline-electric Accord Hybrid sedans will also enjoy scheduled tax credits as soon as the policies become effective (later this year or in 2007).

Though Korea is considering offering a variety of incentives, such as tax break and discount of insurance policies to hybrid car owners, it will not be easy for carmakers to be successful in their sales of eco-friendly cars as long as prices are above those of gasoline cars. But, in the U.S. and Europe, anxiety over the prices resolved itself.

The prices of Honda and Toyota’s hybrid cars will range between $20,000 and $30,000 (20 million and 30 million won) in North America.

GM Daewoo Auto & Technology, South Korea’s third largest carmaker, is mulling the marketing of GM hybrid SUVs next year.