Hybrid Automobiles

Abstract

Hybrid automobile create steady demand not explosive and it was threat to existing technology but main steam consumer did not like this technology based on performance and features. There were two major factors, which contribute to decision of consumers, cost effectiveness and performance. Due to lack of standardization in hybrid technology, there is less number of hybrid manufacturers. It's hard for manufacturers to find parts of automobiles so they have to manufacture within their plants that makes them costly. Due to the cost of producing automobiles, we do not have several hybrid automobile manufacture in market. Both Toyota and Honda together has 85% market share. This makes it difficult to attract high-end consumers.

Table of Content

Abstractii

Hybrid Automobiles1

Introduction1

Discussion1

Conclusion9

References10

Hybrid Automobiles

Introduction

The automobile as a basic concept has hardly evolved since its debut over a hundred years ago. The automobile is still an internally powered personal transportation automobile for use on the road; it is also still designed to carry a driver and a few passengers. However, technical advances in the industry has provided automakers with new technology that allows manufactures the ability to create automobiles that have alternate battery sources as well as alternate fuel sources which will burn cleaner and help the environment. (Yost & Friedman 2006:9)

Discussion

Manufacturers who have never tried their hand at making hybrids are now rushing to create one of their own, while those that already had their foot in the door are trying to make theirs better than what they are now. Automakers are also trying their hands at different variations of the hybrid concept; pushing the limits to see what type of mileage they can get if they pushed the envelope and delving into other options of powering a lighter more efficient automobile.

In the first few years of their release, as gas prices rose, hybrid vehicles were selling well . (Husain 2003:89) But recently, as gas prices have dropped, so has hybrid sales . They have yet to hit the mainstream and the auto manufactures are now struggling with a few questions. First of all, who is the target customer for this technology? And then, how can they bring these vehicles to market profitably? While it may be in the planet's long-term interest to reduce gasoline consumption, there is currently no short-term reason for the adoption of hybrid vehicles. The two main players in this game are the consumers and auto manufacturers. Both are driven by their finances. The problem for the manufacturers that the margins are low , but the cost is still higher than non-hybrids for the consumer.

Based on consumer report, Honda Civic hybrid model gives 36 miles per gallon and market price is around $21,000,but 2003 Honda Civic EX gives 29 miles per gallon and prices is $18,500(Fuhs 2008:1). It would take you 21 and 1/2 years in gas savings to pay back the extra money you initially laid out for the hybrid.

Finally, as this technology is improving, their performance, by changing power terrain more frequently makes even less attractive for traditional ...