Honda has predicted that hybrid cars will account for 10% of its global sales by 2010 after it announced two new models.
Hybrids are powered by electric motors and petrol engines and produce low green house gas emissions compared to conventional cars.
Honda, which already sells a hybrid version of the Honda Civic in the UK, has confirmed it will launch a new model – the Global Hybrid – in 2009.
Honda says the new model will be ‘offered at a more affordable price level’ and it hopes to sell 200,000 a year across the globe.
It is also planning to launch a sports hybrid based on the Honda CR-Z unveiled at the Tokyo Motor Show in October.
Recently it emerged that demand for petrol-electric vehicles such as the Honda Civic Hybrid and the Toyota Prius is growing dramatically in the UK.
Hybrids are currently exempt from the London congestion charge which means commuters can save more than £1600 annually and analysts predict such benefits are likely to further boost the market in the UK.