Honda is considering making hybrids in China

Honda is deciding to produce hybrid cars in China where regulators want more energy efficient vehicles to help combat the nation's choking pollution problem. Honda plans to test demand in China for the Civic Hybrid in three months. Toyota became the first foreign car maker to produce hybrids in China with the Prius. Honda has said that the Civic Hybrid will have a price advantage compared to the Prius. Honda sold a record of 323,469 automobiles in China in 2006, up 25.9 per cent from the previous year. But it has acknowledged that competition is fierce in China as more automakers look to sell cars in what is emerging as the world's second largest auto market after the United States.