"We have just begun discussions with the ministry of heavy industries," a spokeswoman at Honda`s office near New Delhi said, adding, "Once the laws are in place, we can consider when and how we can begin sales."

Hybrid cars get better mileage than conventional gasoline vehicles but India, one of the world`s fastest growing car markets, is yet to put regulations governing hybrid vehicles in place.

Honda sells the Civic hybrid, its sole gasoline-electric model, in Japan, North America and Europe. The car can get up to 80 per cent better mileage than the Civic`s similar sized gasoline model.

India is one of the most fuel and cost conscious markets in the world where users are increasingly choosing the more fuel-efficient diesel powered cars.

Hybrids cost more than cars powered by gasoline or diesel and are difficult to sell without state incentives, Honda officials pointed out.

In India, Honda sells the City, Accord and Civic sedans and the CR-V crossover, all based on the gasoline powertrain.

Honda''s Insight and Civic Hybrid, and Toyota''s Prius and Camry Hybrid offer drivers 52, 42, 46 and 34 miles per gallon, respectively. Nissan''s Altima Hybrid (34 mpg), boasting hybrid technology licensed from Toyota, rounds out the group.

Even with hybrids becoming a standard in automakers'' fleets, Toyota and Honda dominate the lot, producing four of the industry''s five most fuel-efficient models.

Honda''s yet unreleased FCX fuel cell vehicle has qualified for a huge $12,000 tax credit while Toyota Prius qualified for up to $3150 in tax credit.

Honda says this tax credit is another step toward market viability.