DETROIT, Aug. 2 (UPI) -- Honda Motor Co. has joined auto industry incentive wars after years of not having to sell its popular fuel-efficient vehicles by offering buyers deals.
Honda is in a battle with Toyota Motor Co. to increase U.S. market share in the face of generous rebates and cash-back offers by domestic carmakers General Motors, Ford and Chrysler and tougher competition from Germany's Volkswagen, Japan's Nissan and Mazda and South Korea's Hyundai.
Honda is not offering cash-back deals but dealers are being compensated for such perks as free tire rotations and oil changes for the life of the car, the Detroit Free Press said.
Honda has a popular Civic Hybrid and will offer a gasoline-electric Accord Hybrid later this year. Sales of the near luxury Acura brand increased 19 percent.
Honda's U.S. sales rose 3 percent in the first half of 2004 as incentives doubled from $479 per vehicle in the first half of 2003 to $1,011, according to New Jersey-based Autodata Corp.
