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  The Straits Times 9 Oct 06
Fatter green rebate drives hybrid car sales
by Christopher Tan

SALES of hybrid cars, which are powered by petrol as well as electricity, have soared, thanks to fresh tax breaks and the arrival of a wider range of models.

For the first time since the environmentally friendlier cars made their debut here in 2001, sales are now crossing the three-digit mark - a big jump from the handful a year that used to leave the showrooms. Honda agent Kah Motor has delivered more than 80 new Civic Hybrids (each costing $78,000) since June, and has about 100 bookings in hand.

'We didn't even market it much,' said Kah Motor product manager Vincent Ng. 'Next year, we plan to sell even more.'

Borneo Motors - the only other car distributor offering hybrids - has put more than 50 Toyota Priuses ($84,888 each) on the road since launching the car in May. It has another 10 orders in hand. And it already has 40 bookings for the Lexus RX400h - the first luxury hybrid car here - which it launched last week at a price of $169,000.

The tax rebate for 'green' cars, announced last October, is equivalent to a 40 percentage point cut in a vehicle's additional registration fee, the main tax for cars.

When the rebate was first offered in 2001, it was half this figure - the main reason why green cars did not take off in Singapore. The 130-plus new hybrids delivered since May is five times the total number of the cars in Singapore before that.

The more generous rebate has also encouraged car distributors to offer a wider selection of hybrid models. Borneo Motors plans to bring in the Lexus GS450h and the Lexus LS600h next.

Kah Motor's Mr Ng said he would offer new hybrids when Honda rolls them out in two to three years' time.

But for now, 'people find that hybrids are an option they can consider... it's about the same price as a two-litre Civic.'

Owners The Straits Times spoke to were not only happy with the excellent fuel consumption of hybrids - 20km per litre for the Toyota Prius - but also all praise for the cars' other attributes.

'It has a nice pick-up, and is totally quiet,' said Mr Morten Strange, 54, of his two-month-old Prius. 'The engineering is unbelievable. 'It seamlessly changes between the three operation modes,' the gift shop owner added, referring to the car's ability to use petrol, battery power or both to suit the driving situation. 'I've never enjoyed driving in Singapore, but this is like a new lease of life.'
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