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The
Japanese automaker will build hybrid versions of its Accord
sedan and Acura compact crossover sport utility vehicle (SUV) in
the southern city of Guangzhou, Tokyo-based spokesman Ben
Nakamura said on Thursday. It will follow those with a hybrid
version of its Spirior sedan, Nakamura told Reuters.
"By locally producing hybrid models in China, we can lower their
prices and hope to sell more," he said. "That should help us
more easily meet China's tough fuel economy requirements."
Chinese cities are frequently enveloped by smog from coal-fired
power plants, heavy industry and clogged roads. To help clear
the skies, the government has been tightening fuel economy
regulations and offering tax breaks for new-energy cars.
Regulations will tighten gradually through 2020, likely forcing
Honda and its peers to meet them by calling on all types of
fuel-efficient technologies, such as all-electric and
conventional gasoline-electric hybrids, industry officials have
said. It was unclear how regulations will be enforced, they
added.
Honda markets four gasoline-electric models in China, including
a version of its Fit subcompact, but sales are limited as all
four models are shipped from Japan and are subject to relatively
high import duties.
The automaker currently makes and markets its gasoline-engine
Accord and plans to start producing later this year the Acura
crossover SUV through a joint venture with Guangzhou Automobile
Group Co Ltd. It makes and sells the gasoline-fueled Spirior
through a venture with Dongfeng Motor Group Co Ltd.
(Reporting by Norihiko Shirouzu; Editing by Christopher Cushing)
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