By Samuel Ee

A Parallel importer has invested $2 million to specialise in higher-end Japanese models - especially petrol-electric hybrid vehicles - and opened for business at the former Opel showroom in the Ubi motor belt.

Hybrid Motors at 5 Ubi Close has taken up half of the Auto Eurokars showroom, as well as workshop space at the back for its after-sales and PDI (pre-delivery inspection) services.

Also significant is the fact that this is the first time a parallel importer has moved into a stretch of road which has been the sole domain of authorised distributors.

'We will be concentrating on hybrid cars, and luxury MPV and SUV models,' says Eddie Lo, CEO of Hybrid Motors.

He adds that the reason for his focus on hybrid technology is that he expects this to be the future trend.

'I believe hybrid cars will be a trend soon because of high oil prices,' says Mr Lo.

He explains that many people are still not familiar with hybrids but that can be changed by educating them about the technology and giving them some experience with the cars.

'After that, I am sure we can turn them into potential customers. So this is a market we want to tap,' he says.

Another reason for targeting hybrid vehicles is the anticipated arrival of more such models next year.

'In 2009, a lot of the big manufacturers will be entering the hybrid segment, like Mercedes-Benz, BMW and Porsche,' he says. 'There will also be additional models from Lexus and Toyota, such as the new Prius.'

For now, Hybrid Motors is offering two hybrid models from Toyota - the Estima MPV and the Harrier SUV.

Other conventional models include the Alphard Vellfire, Estima and Voxy MPVs from Toyota, as well as the Land Cruiser 200 and the RAV4 SUVs.

The Honda Stream compact MPV is also available at Hybrid Motors.

Authorised Toyota and Lexus distributor Borneo Motors Singapore already offers several hybrid models, such as the Toyota Prius, Lexus RX400h and Lexus LS600h.

Another hybrid Lexus, the GS450h saloon, will also be launched by Borneo Motors by the end of this year.

Mr Lo says those who are concerned with fuel economy and green motoring should consider a hybrid over cars that have been retrofitted to run on CNG or compressed natural gas.

'CNG may not be so practical because of the gas tank at the back,' he says. 'What happens if a big truck hits the car from behind? Think of the physical impact of this heavy metal object on the occupants.'

Mr Lo first entered the parallel import business when he began working for Richburg Motors in Hong Kong in 1999.

In 2004, the Hong Kong citizen was posted to Richburg's Singapore office as sales manager.

He says that by the time he left in early 2008, he had doubled Richburg's sales of Toyota and Honda parallel imports to an average of 50 units a month.

After leaving Richburg, Mr Lo returned to Hong Kong. But he was lured back by the 'many opportunities' in Singapore and decided to start Hybrid Motors earlier this month.

He says he aims to sell about 15 hybrids a month, plus another 30 conventional petrol-engined models.

'With the government pushing for green cars and the integrated resorts opening next year, it will be a very good opportunity to sell more hybrid vehicles,' Mr Lo says.

This article was first published in the Business Times on August 20,2008.