Report: Honda planning late 2010 launch for Hybrid Fit (Jazz)

Honda's new hybrid strategy is focused on reducing the cost of hybrid components and introducing the fuel-saving technology into new markets, including the ultra-competitive compact car segment. We’ve already seen the first of these low-cost hybrids in the form of the recently launched Insight, and this is likely to be followed by a performance hybrid based on the CR-Z concept car from 2007’s Tokyo Motor Show, as well as a hybrid version of the Fit (Jazz) hatchback.

The Fit Hybrid is especially surprising considering Honda's previously held view that there was no point adding a hybrid option to an already frugal car, but a new report claims the car is coming and will be on sale by the second half of next year - one and a half years earlier than previously thought. On top of that, Japan’s Nikkei business daily is also reporting that the new CR-Z and Fit hybrids will be joined by a new Civic hybrid by the end of 2012.

The key to their success will be the lower costs of their hybrid systems, which in turns means lower price tags for consumers. To keep costs low, Honda engineers have focused on more efficient manufacturing processes for high-cost features such as the batteries and hybrid control modules.

Honda spokeswoman Akemi Ando said the carmaker has not decided the timing of release, price or sales target for the Fit hybrid, but the reports claim the Fit hybrid will retail for about ¥1.5 million (approximately $15,800) when it goes on sale next year.