Hyundai Motor said on Sunday that it will release an LPG hybrid in 2009. The Avante LPG Hybrid will combine an LPG engine with an electric motor in the popular midsize sedan. It will be the first Korean hybrid car for consumers.

Hyundai reckons the car will use only 30 percent of the fuel consumed by the existing Avante since it will have an estimated fuel efficiency of 19 to 20 km per liter and run on LPG, which costs half the price of gasoline. Production of Hyundai's hybrid versions of the Verna and the Pride, test models of which are currently being used by the government, will be suspended in 2008.

"We plan to release an LPG hybrid before a gasoline hybrid because there are sufficient LPG fuel facilities and we have the advanced technology. A gasoline hybrid will be released by 2010," a Hyundai Motor official said.

Another reason Hyundai wants to release the LPG version first is to beat out Japanese competitors. If Japanese hybrids outsell Korean hybrids, the Japanese brands will become top beneficiaries of benefits from the Korean government, and the government's plan to boost domestic production of eco-friendly cars could backfire with a rapid increase in sales of Japanese hybrids. The benefits include government subsidies, which would reduce the price of a Honda Civic Hybrid from W33.9 million (US$1=W928) to less than W30 million.

Vice Environment Minister Lee Kyu-yong released a plan on May 7 that will grant incentives like tax breaks and subsidies for hybrid cars.

But the introduction of LPG hybrid cars will require a change in local regulations that restrict LPG vehicles to rental cars and cars for the handicapped. The government is reviewing ways to temporarily allow LPG hybrids to be purchased by normal customers.

Hyundai Motor will begin mass producing hybrids in 2009, with an aim to gradually increase production to 20,000 units by 2010, 100,000 by 2012, and 300,000 by 2015.

Two hybrid cars are currently officially available in Korea, the Lexus RX400h and the Honda Civic Hybrid.

(englishnews@chosun.com )