Honda Motor Co. (NYSE: HMC) President Takanobu Ito plans to capitalize on the global shift toward smaller cars that offer advanced technology to reduce both petroleum consumption and carbon dioxide emissions. Ito set out a roadmap from the second half of this year through the beginning of 2013 that includes more hybrid models based on nickel-metal hydride batteries, new lithium-ion batteries for hybrids, plug-in hybrids, and all-electric vehicles.

Honda is way behind competitor Toyota Motor Co. (NYSE: TM) in hybrid sales, where Toyota outsells Honda by about 6:1. The company, which ranks third in sales in Japan, also trails Nissan, which is on the verge of releasing its new Nissan Leaf all-electric car. Newly public Tesla Motors Inc. (NASDAQ: TSLA) is also a threat in the US.

Honda plans to introduce a number of new, small hybrid models within a year, beginning with a Fit hybrid that will hit the Japanese market this fall. The company will also begin producing lithium-ion batteries in the second half of this year that will be used in the next generation of the Honda Civic. Ito did not confirm or deny reports that only the hybrid Civic will be available in Japan in the second half of 2011.

The company also plans to introduce a plug-in hybrid system for mid-size and larger vehicles. The plug-ins are expected to go on sale in Japan and the US in 2012. Gasoline-powered cars will get new engine and transmission designs in 2012 that will “further improve” fuel economy. A new, smaller diesel engine is also on tap for the European market in 2012. An all-electric car is also scheduled for the Japanese and US market in 2012.

Not to be outdone, Volkswagen AG has announced plans to launch a hybrid version of its Touareg SUV later this year in the US. The company also plans a hybrid version of its Jetta model in 2012, and an all-electric vehicle in 2013. Volkswagen’s plans amounts to talking points, lacking the detail and scope of Honda’s.

Honda also revealed a demonstration program of what the company calls its “Honda Electric Mobility Synergy.”  The company even has a concept illustration. By the end of this year, Honda will combine a solar-powered electric vehicle charging station with some of its electric scooters and cars in both the US and Japan. US partners include Stanford University, Google Inc. (NASDAQ: GOOG) and the city of Torrance, California. Because Honda also makes thin-film solar PV modules, the company wants to leverage all its technologies in a soup-to-nuts personal transportation solution.

With Toyota facing new problems over quality concerns, Honda could gain some traction against its nemesis the Toyota Prius, provided that Honda can execute to its plan. That’s always easier said than done.

Paul Ausick