Hybrid Mini-mini van

Japan’s Daihatsu Motor unveils hybrid commercial van
Mon Aug 29, 2005 10:50 AM BST

TOKYO (Reuters) – Japan’s Daihatsu Motor Co. unveiled on Monday a gasoline-electric version of the Hijet Cargo model, touting it as the world’s first commercial hybrid minivehicle, but admitted lower prices were needed to achieve significant sales volume.

The small-car maker, a unit of Toyota Motor Corp., priced the 660cc van above 2.2 million yen, more than double that of its gasoline-only cousin, aiming to sell 300 units annually after sales start at the end of next month.

Daihatsu said internal data puts the hybrid van’s fuel economy at around 20 km (12.4 miles) per liter, or a 30 percent improvement over the gasoline-only version.

That translates into savings of 50,000 yen a year on fuel for someone who drives 10,000 km a year at 120 yen to a liter of petroleum, Executive Vice President Kiyokazu Seo said.

The questionable financial merit to the customer of buying a hybrid minivehicle is precisely what prompted rival Suzuki Motor Corp. to discontinue production of its gasoline-electric mini passenger car in February. The Twin model, which went on sale in January 2003, has sold a cumulative 280 units.

“The cost premium of a hybrid is a headache for every company,” Daihatsu President Teruyuki Minoura told a news conference. “This is the biggest challenge as we continue to develop the technology.”

He added that Daihatsu had not decided on the gasoline-electric powertrain as the way to go to raise its fleet’s fuel efficiency.

But he said it was crucial for minivehicles, which have a maximum engine displacement of 660cc and receive preferential tax treatment, to be the most fuel-efficient cars available to remain the most economical vehicle choice for customers.