Our neighbours China have not taken too well with hybrids and in the third year of sales of the Toyota prius sales have fallen drastically[81%] this despite the fact that in the more developed markets the Prius is doing exceptionally well and is even becoming the favourite amongst fleet owners.
So what's so different in the emerging markets.Lets start with cost ,in the emerging markets after all the duties and taxes the hybrids cost as much as twice as what they do in the developed markets.Which buyer would go in for the civic hybrid at Rs.20 lakhs[approx $50,000] even if it has a Honda badge.Then as I have always been pointing out there is the diesel option.I just cannot see any justification in Hybrids[petrol] commanding such an exhorbitant premium over diesels.And to top it all diesels are now more fun to drive as well.
Would be interesting to see how Honda and toyota go ahead with their hybrid plans in emerging markets.But unless the prices of hybrids come down significantly in markets where it matters the most toyota's dream of selling a hybrid version of each of its product line-up would remain just a dream.
