HONDA is expecting hybrid sales to reach 1.2 million a year by 2008 with an expanded range of low emission vehicles.

Growth will be driven by the environmental performance of its models, such as the new Civic IMA, which has a 1.4-litre engine with additional electric power, which offers 61.4mpg, but 115bhp and a 12% benefit-in-kind tax rate. Geoff Lovegrove, corporate sales manager, southern region, for Honda, told delegates at a meeting of the Association of Car Fleet Operators southern region that currently one of the biggest drivers of demand for hybrids was London, where they are exempt from the congestion charge.

Lovegrove added that additional volume was vital to achieving competitive prices against petrol and diesel models.

He said: ‘The greater the volume of IMA we can produce, the sooner we can bring them in cheaper than diesel. In five years, you can expect to see IMA throughout the Honda range.’