Why Honda is growing as Detroit falls behind

When consumers astonished the U.S. auto industry two months ago by quickly shunning trucks and going for gas mileage, the biggest beneficiary ended up being Honda Motor Co.

The No. 2 Japanese automaker, with the most fuel-efficient model lineup in the industry, never put both feet into the U.S. truck market, focusing instead on slow-but-steady growth with popular cars such as the Civic and the Accord.

It paid off in June. While its major competitors reported double-digit declines in sales and burgeoning truck and sport utility vehicle inventories, Honda had a modest 1 percent sales increase. Its car sales were up almost 20 percent from the same month last year; the Civic and the Accord were among the industry's top sellers.

"They are better positioned than anybody in terms of the products they have for this kind of environment," said Ron Harbour, author of a widely respected annual report on auto factory productivity.

Honda's top U.S. executive said Wednesday the company is well-positioned for $4 per gallon gasoline because it always has emphasized small, fuel-efficient vehicles.

Honda Civic goes green with mileage envy

They have long ruled American roads, standing out as a symbol for the gas-conscious and green chic in what’s a guzzlers’ paradise. Now hybrids have finally debuted in India. Honda Siel launched India’s first ever hybrid vehicle last week with the Civic sedan. The company, which had announced its decision to introduce the Civic hybrid in India and had even showcased its fuel cell car at the auto show to highlight its green genes, does not expect the Civic to roll in the kind of big volumes it has generated in the US mostly because of the 104% customs duty on all-import cars which makes it very expensive. In the US, hybrids have scored not just because of their mileage and green footprint but also due to tax breaks which make them affordable. For Honda, the hybrid in India is a positioning plank for its technology. So what exactly is a hybrid? It’s essentially a petrol-electric dual fuel vehicle that offers better mileage along with lower emission.The Honda Civic Hybrid System features a three stage i-VTEC +IMA that employs Honda’s 1.3 litre o-VTEC (variable valve timing and lift electronic control) petrol engine to provide three stages of valve timing (low speed, high speed and cylinder idle mode) combined with a compact and efficient electric motor, namely the IMA (integrated motor assist) system. Together with its CVT transmission, the system provides nearly 50% improved fuel efficiency than the usual 1.8 litre automatic Civic but offers performance that’s just as peppy. The Civic Hybrid can deactivate all its four cylinders and operate on the just the electric motor when it is in steady cruising mode. Also when you press the brake and the cars stops, the combustion engine switches off. Both these factors are responsible for the fuel efficiency that it promises.