Hybrids car: The future car
Course: Management Information Systems Instructor: Dr. Prithwis Mukerjee Amol Bankar (10BM60009) Vinod Gupta School of Management, IIT Kharaghpur
With the ever increasing crisis of the fossil fuels, the need of the hour is to switch our energy supply to some non conventional source. Automobiles consume a major chunk of fossil fuels, so cars/automobiles running on some alternate source of energy would be of much help in this pursuit. Hybrid cars are one such radical developing technology which uses hybrid or mixture of fuels (generally a conventional and a non conventional one). This paper explores new vistas for the future of hybrid cars together with the approach and the requirements of such an endeavour. It will als o present a comparison on existing as well as future cars.
Massive investment in the field of developing green, efficient and alternative fuel vehicles has been fuelled by the growing concerns of reducing carbon emissions and the increasing hi ghly volatile conventional fuel prices. The recently observed growth of around 15% in the Hybrid car sales in spite of a global Automobile Industry slowdown proves that the Hybrid car concept has emerged as the most feasible and viable solution to the current situation ant it is fast attracting a huge attention of the major players in the Automobile industry. Though now, only the major players like Honda and Toyota in the field of automobile industry are the torch bearers in the field of Hybrid cars, but now it is observed that almost all the players are taking initiative to harness the huge untapped potential in this field. This report contains a detailed Market survey of the emerging new technologies and players in the field of Hybrid cars. At the global level U.S leads the Hybrid car sales; second spot is shared by Japan and Europe. This report also throws some light on the policies undertaken worldwide by various governments to promote usage of green cars. The report also contains a forecast of future of Hybrid market worldwide and country level. The economic and the environmental benefits of the Hybrid car, the hurdles in the rise in the Hybrid cars are also covered in the report. Forecasting is done taking into consideration the current market slowdowns and the expected future positive developments in the market. The more fuel efficient and the cost effective models launched by Toyota and Honda and also the initiatives taken by the government worldwide remain key factors in the development of Hybrid cars as the most viable solution to the current environmental problems and depleting fuel resources.
A Insight into the history of the Hybrid cars
The Hybrid car has finally leaded to the ends meet wherein everyone consumes fewer amounts of fuel and thus contributing in the reduction of air pollution. The rapid advancements taking place in the field of Gasoline engine has lead to the increased popularity of Hybrid cars. Hybrid cars use two power sources, one recharge and another fuel driven to d rive the internal combustion engine. This leads to less consumption of fuel and air pollution. The credit of invention of the concept of Hybrid car goes to Ferdinand Porsche. He was the one who made the first Hybrid electric vehicle way back in 1989. Following his footsteps many people have pursued their interest in the field of Hybrid vehicles. However till twentieth century none of the major car manufacturers neither invested in the field of Hybrid cars nor produced them in mass quantity. From its invention till the twentieth century the hybrid technology was mainly used in the submarines operating on diesel and electricity. The submarines operating on both diesel and electricity functions very much the same as the hybrid car. However the main difference was that in submarine the main motive was to conserve as much oxygen in the submarine rather than to cut on the usage of gasoline as in the case of Hybrid car. Now nuclear submarines have evolved and they have substituted the diesel ±electric submarines. Victor Wouk, an idealistic inventor is the father of today¶s modern hybrid car. He was the one who instead of focusing on making a complete electric car came up with a brilliant idea of combining low emission benefits of a electric car and the huge power generating capacity of a gasoline engine. At that Wouk did not get any encouragement to his ideas. He was heavily criticized from the idea of building a car fully operated on electricity. Wouk along with his colleague, Charlie Rosen stated a company to develop on their new Hybrid car idea and to make the hybrid car very much similar to the ones running everyday on the busy streets of America but emitted fat less air pollutants than the conventitional vehicles. In the late 19 century the Honda Insight and the Toyota Pirus emerged as the first two successful Hybrid cars ,they were the pioneers in the concept of hybrid cars .With their looks and Technology superiority they introduced a new dimension in the automobile industry called the Hybrid cars. It is true that the conventional and the older versions of the Hybrid car looked like alien and were extremely bulky and high priced. But new technology has now enabled the manufacturers to design and build Hybrid cars that closely resemble the conventitional gasoline cars and also cut down on the cost involved in building a Hybrid car. In fact modern Hybrid car looks very much like a conventional gasoline car plus the reduced emissions coupled with fuel consumption is reduced by a whopping 50%. For Example, Honda Civic hybrid model which in appearance is very similar to the conventional version one gives an average of 50 miles per gallon. Ever since its launch Toyota Pirus has remained the premium choice among the Hybrid cars. During Year 2004 Ford also entered the Hyb car rid segments with the launch of Model Ford Escape, a hybrid SUV, a first of its kind. A year later Toyota also came up with a Hybrid SUV called highlander. Nissan is now planning to introduce a Hybrid version of the Model Nissan Altima in the market. The growing demand and the popularity of the Hybrid car have forced other manufacturers to follow the footsteps of other auto giants who already have launched a version in the hybrid car market.
Working of a Hybrid car: A Glimpse
In simple terms a Hybrid car makes use of both electricity and gasoline to power the car. When the car is in idling mode at the petrol station or at a traffic junction the gasoline engine shuts off .The car is then purely running on the support of the electric motor. This can explain the high fuel efficiency of the Hybrid car compared to the gasoline car. Also as the operation on the electric motor is smooth process, that¶s why Hybrid cars are generally very quiet on roads. Once the accelerator is pressed again, the internal combustion engine automatically takes over.
Figure 1 shows how the Internal Combustion engine, Generator, Power spilt Device, Electric motor are linked to each to other in hybrid vehicle, while figure 2 shows a schematic representation of the transfer of power in a Hybrid vehicle during motion. There are Hybrid cars which operate purely on electricity and use internal combustion engine as a backup or for recharging the batteries. However the limitation is that they are useful only for local travels. For long travels it is advisable to keep fuel as a backup. Most Hybrid cars developed today use Kinetic energy generated in breaking for charging the batteries; they don¶t need to be plugged in like electric car. To summarise Hybrid car consists of batteries for the storage of energy, fuel tank for the storage of fuel which is very essential in long drives, internal combustion engine to generate power to propel the vehicle and electric motor.
Types of Hybrid cars
Parallel hybrid: Parallel Hybrid primarily consists of single electric motor and internal combustion engine. The two engines either operate individually or together to provide power. The gear box, electric motor and the internal combustion engine are engaged with each other with the help of clutch. While in idling condition or when the car is running on the electric motor the clutch is engaged with the electric motor .When in need of high power the clutch is coupled with the internal combustion engine, while the electric motor remains idle. Honda Insight is the first produced and widely popular vehicle in this category.
Fig 3 Honda Insight
Mild Parallel Hybrid: A compact electric motor generally having a capacity of <20 KW is used to assist degenerative breaking, extra power assist required during start and acceleration. Honda Civic hybrid, General motors¶ SAS Hybrid, Mercedes Benz S400 Blue Hybrid are the few vehicles belonging to this vehicles power train configuration. Power split or series ±parallel Hybrid: It consists of electric motor, internal combustion engine and power splitter. The main job of the power splitter is to distribute the power from the engines to the wheels. The power distributed can range from 0-100% for the internal combustion engine as well as electric motor. It can be also in midway like 20% from electric motor and the rest 80% from t e h internal combustion engine. The usage typically depends upon the geographical conditions in which the car is operating and the energy usage. For example in city limits , power is more preferred in order to accelerate , overtake hence in city limits the major chunk of power is derived from the internal combustion engine. While on a long flat Highway where we can drive at a constant speed for long distance or when the car is in idling condition we can use electric motor to generate power. The world renowned Toyota Pirus, the Ford escape, the Lexus G540 and L3600 have this power engine configuration.
Fig 4 Toyota Pirus
Series Hybrid: A series Hybrid is also called as extended range Electric vehicle. Here there is no interaction between the electric motor and the internal combustion engine as such. The engine is operated to recharge the batteries when their present level is not sufficient to meet the power demand. Chevy Volt from GM expected to be launched in 2010 is series hybrid.
Fig 5 Chevy Volt
Plug in Hybrid electric vehicle (PHEV): It can be a series or parallel built. The main advantage of PHEV over its siblings is its increased energy storage capacity due the usage of Li-ion batteries. It also has the facility of connecting it to the main electric supply and getting it recharged. This is a beneficial option for the people who want to cut down ICE usage. Honda Civic Hybrid belongs to this category.
Fig 6 Honda Civic Hybrid
Fuel Cell- Electric Hybrid: A fuel cell hybrid consists of a fuel cell instead of ICE engine. A fuel cell uses Hydrogen as the fuel. A fuel cell is used to power the electric battery when it¶s depleting. Ford Escape, Honda FCX is the vehicles in this production line.
Fig 7: The Ford Escape
Advantages of a Hybrid car ove r the conventional Gasoline engine cars
The growing environmental concerns have again revived the drive for the developments in the HEV technology which was experiencing a lull since last hundred years since its innovation. The people highly value the importance of a personal vehicle as a medium of transport. This gives an indication of the huge target audience to which the Hybrid vehicle can cater. The HEV vehicle is more energy efficient when compared to their conventional counterparts. The HEV vehicles give an efficiency of about 46% in operation while compared to 18% of the conventional cars. The misconception that the batteries utilize a large amount of energy has been proved wrong by numerous studies, which have indicated that the batteries are at least 30% more efficient than the gasoline powered engines.The comparison between HEV and the conventional vehicles is of that between the technology which is new, innovative, a lot more efficient and offers a wider range of benefits to an technology which had already reached its peak of innovation.
The advantages of a HEV over the Gasoline engine are as follows Increased fuel efficiency: A Hybrid car uses both electric Motor and gasoline powered engine to run the car. During the idling time the gasoline powered engine is taken over by the electric motor and thus the extra amount o fuel spent during the idling time is saved .The HEV can cut about 50% of fuel consumption. Source of clean energy: It has been proved by the studies and research undertaken duri g the last n decade that the HEV emit far low toxic vapours than the conventional cars. This can help in certainly addressing the environmental concern in a big way, as the transportation sector is the second largest polluter in the world. Reduced Noise pollution: A HEV is lot more quitter on roads than its counterparts. Encouraging Government policies such as Tax incentives: Admitting the serious need of a clean energy and alternative fuel source, The President of Government of United States, George Bush declared a lot of tax incentives for the owner of Hybrid cars. The other benefits that the Government offered included incentives like free parking , free entry to car pool lanes, discount on fees on toll gates. Sweden reported record sales in the sector of environmental friendly cars in the year 2007. The green tax break of 10000 Kronor for the owner of HEV was the main contributing factor to the high sales of environmental friendly cars. Andrew Carlgreen, The then Environmental Minister even quoted at the press conference that Sweden was looking forward in taking the lead in Europe¶s environmental friendly car league. The decrease in the emission of CO2 from new cars has been the highest in Sweden than any other European country; this confirms the firm sta nce taken by the Sweden government. India has also shown a keen interest in keeping a tap on the emissions by introducing tougher fuel economy standards, offering financial tax incentives based upon the economy of the vehicle and the amount of emissions. It has introduced a tax called Gas-guzzler tax on the inefficient cars. Queuing up of manufacturers : This presents a bright prospects for the Hybrid car market, as this ensure that the customers have enough choice to choose. The increased competition would lead to the lowering of the car prices and also usher in new technological developments to address the current problems faced by the Hybrid cars.
Disadvantages of the Hybrid cars
High initial cost: Because of the lack of Mass production and lack of atten tion given to the development of the Hybrid technology by the investors the inital cost of the Hybrid car still remains high compared to the conventional combustion engine cars of the same weight. But taking into considerations the long terms benefits Hybrid car score high in terms of fuel efficiency, energy saving and cutting down the fuel emissions. The market scenario is also rapidly changing with the increase in the no of participants in the manufacturing of the Hybrid cars; in future this would certainly lead to lowering of the cars prices to reasonable level. Bulky: This is due to additional weight of the batteries and the electric motor. Maintenance 1) In availability of service stations at near by convenience. 2) The Hybrid cars have complicated engine structure along with the operating of the engine is known to only experience mechanics.
3) The electrical charges seem to malfunction at low temperatures. 4) The Metal Hybrid Batteries life depend upon their usage although Toyota Pirus promises a lifetime battery but it is generally observed that a new battery has to installed after very 150k miles -200k miles , but this is very healthy if we compare to average car battery life. 5) Replacements parts are very costly and also may not be available at each and every location. Accidental Risk: In an event of accident there is risk of exposure to the high voltage wires this may be potentially dangerous for the driver.
Major players in the Global Hybrid car market
Many car manufacturers have already recognised the huge potential of the hybrid cars and have launched their own versions in the segment of Hybrid car. Toyota and Honda are the front runners in this race, with Toyota having the majority of market share. Both Toyota and Honda have various Models lined up in the years to come. GM and Ford have also entered the race with their Models. Nissan is expected to join the race soon.
Toyota¶s dominance in the field of Green cars is under stiff competition from the rivals and is likely to dwindle in the coming year¶s .Ford and Honda has both adopted aggressive sales target for their respective models. Honda Insight 2010 is well priced below 20,000$. Ford is trying to the attract the power and style oriented customers with the launch of the Ford¶s first Hybrid sedan The 2010 Ford fusion Hybrid .Ford is also planning to double its production of Hybrid vehicles. Future plans of the major players Toyota: Toyota is panning to emphasize its output power system and to offer a full lineup of Hybrid models. In the wake of increased competition from the rivals Toyota is planning to double its Hybrid car lineup and has set an aggressive sales tar get of 1 million sales of per year for the year 2010.Toyota has recently developed a new drive system called the ³Toyota Hybrid system´ which it plans to use in the new range of models offered including the SUV and a luxury car(Lexus).Toyota is building an image and projecting itself as Green car manufacturer particularly in Europe to increase its sales and to differentiate itself from the car manufacturers. Honda: Honda is planning to introduce the Hybrid car concept in the small cars segment and target the customers whose priority is more inclined towards economy than power. Already Honda has the image of a fuel efficient car in the market. Honda uses the electric motor of capacity of 10kw-20kw compared to the 2 motors each of 100kw capacity used by Toy ota in a car. Honda battery also has half the shell life as compared to that of the Toyota battery. Honda has also started initiative towards the development of its ³Fits´ model which represents the fit compact car of future. However when it comes to large and midsized car Honda is still in the favor of using the clean diesel engines to improve the efficiency of the cars. General Motors: GM is already in the process of developing three types of hybrid systems, the Light, Medium ±output and the high-output hybrid systems. Light hybrid would be used in Chevrolet Silverado and Chevrolet Sierra. The Medium output called the BAS (Belt Alternator system) would be used in sedans; while the high output system AHS2 (Advanced hybrid system 2) would be appearing in large capacity vehicles like SUVs .ASH2 is developed in collaboration with Daimler And BMW. The company is planning to launch its twelve already existing models ih hybrid version with majority of them equipped with AHS2.
Ford: Ford set an ambitious sales target of around 250000 hybrid unit per year for the year 2010. As the ford has a dominant presence in US in heavy car segment it can be assumed that the Ford would be targeting introducing Hybrid technology in Heavy car as the American people generally prefe r power behind the wheels than to fuel efficiency. The following table gives an idea about the existing and future Hybrid car models of the major Automakers.
Fig 8 the details of the existing and future Hybrid car models of the major Automaker (Ref 1).
Who is the best? With the progress of technology and science it has become possible for the manufacturers to cater to the different taste and preferences of the customers and also the Hybrid cars are used in different geographical conditions. The taste and preferences of the people also differ significantly around the globe. Hence it is very difficult to declare among the Hybrid car which is the best and perfect. However they can be classified into the broad categories and the best among those segments can be chosen. The Best Sedan Hybrid car was awarded to the latest Honda Civic (Ref 1).The new sporty and sleek look along with the convenience and comfort differentiates it from the other Hybrid cars in this category.
Ford Escape clinched the best Hybrid SUV award (Ref 1). Honda insight got the award of the best fuel efficient car (Ref 1). In overall performance, comfort, fuel efficiency and looks Toyota Pirus emerged as the best Hybrid car (Ref 1). The following table gives the comparison of mileages of leading Hybrid car models (Ref 2). Miles Per Gallon ± Average Miles Used Per gasoline of Fuel · Honda Accord Hybrid ± 28 MPG (city), 35 MPG (Highway) and 31 MPG (Combined Average) · Honda Civic - 49 MPG (city), 51 MPG (Highway) and 50 MPG (Combined Average) · Lexus GS 450H - 25 MPG (city), 28 MPG (Highway) and 26 MPG (Combined Average) · Toyota Camry Hybrid - 40 MPG (city), 38 MPG (Highway) and 39 MPG (Combined Average) · Toyota Prius - 60 MPG (city), 51 MPG (Highway) and 55 MPG (Combined Average)
The sales of Hybrid car have almost doubled every year since 2000. Though the Hybrid car in the current state occupy on 2% of the total car sales worldwide. The future tough environmental norms, tax incentives offered by the government would usher in a new life in the development of hybrid technology. The major Automakers have already announced their ambitious Hybrid car sales target for the year 2010. GM has planned to launch 12 hybrid versions of its already existing models. Toyota aims to achieve car sales of 1million per year in the year 2010. Honda has already invested a lot in developing its new model ³Fit´ which represents the Hybrid model of the small cars. The entry of Hybrid model in the small cars segment represents a huge potential for growth if the technological developments allow bringing down the cost of the hybrid car to a reasonable level. China and India are the leading countries in the small car sales segment. These are also the countries who recorded the highest growth in Automobile sector. China has recorded around 40% percent growth in the sales of the car in 2009 compared to the previous year. This represents that if a small car with Hybrid technology which offers long term benefits and at a reasonable price compared to its conventional internal combustion engine car, it would capture the chunk of the car market size in a very less time. The major Auto carmakers in US have now shifted their attention towards manufacturing more fuel efficient and green cars, almost all the major companies have launched their own version of Hybrid car in the market to take the lead in the race. The US government has also declared various tax incentives for the hybrid car owners like reduction of toll tax, free parking heavy cuts on auto tax. This policies adopted by the government would certainly attract customers towards Hybrid car as such policies would bring down the initial cost of purchasing a Hybrid car. Based on the online Market survey carried out by NRI in Japan (Ref 1) it is esti ated that the m domestic market of Hybrid cars in Japan would raise to 460,000 units. The same survey estimated that the American and the European market would grow to 1.68 million and 50,000 units of Hybrid car respectively by the year 2012. The Hybrid cars would account to around 6% of the total cars in US, Japan and Europe. Europe has no speed limits and also the annual mileage of the Hybrids cars are shorter than compared to that in US. In Europe the clean Diesel cars with high fuel economy will eat the market of the Hybrid car.
Fig 9 (Ref 1)
Fig 10 (Ref 1)
From the Fig 10 (Ref 1) it can be seen that in 2012 the combined car market of Japan, Europe and US would worth around 760 billion yen. This would result into the shifting of global focus from oil industry to auto industry. Typically the Hybrid car Auto industry can be divided into four subset industries namely the electric motors, inverters, electrical components and the conventional Auto industry. The growth in one sector would transcend to the other industries as well. This represents a huge potential for the growth of electronic and electric component industry. The combined value of the Japan, US and Europe automotive parts market comes to around 60 trillion yen according to the survey (Ref 1). The size of the lithium batteries which are heavily used in Hybrid cars for more energy storage is already of 700 billion yen and with the growth expected in the sales of the Hybrid cars this would raise by around 30%-40%.Therefore the Hybrid car market offers a lot of growth opportunities for the lithium battery makers. For the electronic and electric component manufacturers the Hybrid car offer very stable source of market, because it is generally observed that in the automobile market once is absorbed it stays for a very long time as in the case of gasoline cars. oversely if we think C from the car manufacturers point of view the increased competition among the components and battery manufacturers would not only bring in technological innovation would also would lead to the decrease in the prices of the components, thus ultimately decreasing the cost of manufacturing a car.
Hurdles in the progress of Hybrid car
High initial cost and Maintenance The high initial price is the main hurdle in the progress of the Hybrid car. As the Hybrid technology was not given much attention during the last century the cost involved in manufacturing the Hybrid car is high due to the lack of technological innovation taken place in this field. This is also due to that fact that batteries for electric motors involved in the manufacturing of a Hybrid car are highly priced and the electronic components manufacturers have a monopoly in this field as they are limited. It should also be noted that the process of integrating these components with the conventional gasoline engine is also a very complex process. Skilled manpower and resources are required for this purpose. But now with the queuing of the Automobile manufacturers to develop and launch their own Hybrid version the road ahead seems quite bright for the hybrid car. With the growth in the number of manufacturers in the automobile Hybrid car sector will not only lead to the decline of the prices to reasonable level but would also usher in a whole new technological innovations that can cater to the different taste and preferences of the different people. This can lead to the expansion of targeted buyers of the Hybrid car. This would help to extend the product line and product depth of the Hybrid car thus strengthening the penetration power of the Hybrid car in the market. In the survey carried out
by NRI in Japan in 2006 (Ref 1), it was observed that the 40% of the people was of the opinion that they would not consider buying a Hybrid car having a cost differential of more than 200000 yen than its conventional counterpart. It was also observed that the satisfaction among the Hybrid car users was very high in terms of quietness, fuel economy and comfort of driving. The satisfaction was also with the fact that the acceleration was increased to about 20% than the previous year¶s model, but the satisfaction was very low when it comes to maintenance. The electronic components of the car are very costly and when damaged only the skilled people in the field can diagnose the problem. The cost of changing the battery of Hybrid car after few years is around 100000 yen (Ref 1).This problem would be solved with the gradually with the growth in the sales of the Hybrid car. As a result t e h increased competition in the electronic components manufacturers would help to bring about innovations in the Hybrid technology in the areas such as power of the electric motors and acceleration of the Hybrid cars which is low compared to the conventional cars. These mutual benefits would make it possible to extend the experiences of Hybrid car to the customers at affordable prices. Low awareness among the people about the Hybrid car There is a big need of infusing the advantages of the Hybrid car in the mind of the people. The low awareness about the Hybrid car among the people has hampered the progress of the Hybrid technology substantially. Though the Government policies such as Tax rebates, free parking, discounts on toll tax etc have contributed to a great extent in creating a visibility of the Hybrid car in the market. Automobiles manufacturers already in the line of manufacturing Hybrid car should take an initiative in the promotion of Hybrid technology through their advertisements and the CSR activities. Government should also encourage the organisation of events and programmes that help in spreading the awareness about the advantages of the Hybrid cars. In the online survey done By NRI (Ref 1) it was observed that only 55% of the conventional car drivers know about Hybrid car. It is necessary to educate the remaining 45% about Hybrid cars as they can be the potential customers of Hybrid car in future. The conventional mindset of the people It is generally found that the technology which gets absorbed in the market is there to stay for a long time. This is absolutely true in Automobile sector. During the last century people have become so used to the gasoline engine that it is hard for them to imagine that there are other sources of energy which are renewable, cleaner and readily available that can drive their cars. The high initial cost of the Hybrid car makes it even more difficult for the people to take risk of shifting to a Hybrid car. Also it would take time for the people to trust the Hybrid technology as it is very new in the market. The high degree of uncertainty among the car drivers about the purchase of a Hybrid car can be removed by publishing the experiences of already Hybrid car owners. Entry of Hybrid technology in small car segment would definitely open a new domain for expansion for the Hybrid car. The prime factor being the cost the small hybrid car would be obliviously priced well below the heavy hybrid car like SUVs. This would ensure that the technology oriented high middle class technology oriented would think of Hybrid car as an option before going for a car sale. As discussed earlier Honda has already started the development of compact size Hybrid car.
Future of hybrid technology Hybrid technology basically represents a cross-between two technologies. The concept of Hybrid technology can be extended to other renewable energy resources also like Geo -thermal, Wind, Tidal solar etc apart from electric energy. Also with the conventional energy resources depleting hybrid technology has the potential of expanding into other product segments apart from automobile industry.
Hybrid car represents the future of automobile industry. It is the latest breakthrough in technology in the automobile industry. This car can save a lot of money on fuel due to its excellent fuel economy coupled with lower emissions and quieter functioning. Thus Hybrid car offer a lot more as compare to the conventional cars. It is now the fact that the Hybrid car are getting a lot more popular with the passage of time in fact during the last few years the Hybrid car sales have almost doubled per year. The typical Hybrid car is priced around as much as 30000$. The initial cost of the Hybrid car though may seem higher at the first instance, but if we look at the long term benefits it is a very little investment. Also on the purchase of the Hybrid car the owner can enjoy tax rebates, free parking and discount on toll tax in US and Europe. A Hybrid car is the combination of both electric car and the gasoline powered engine. It can operate on both the electric motor and the internal combustion engine depending on the intensity of usage of power. The hybrid car is low when compared with conventional ICE car in terms of power generated and acceleration. With the technological developments taking place at a advanced pace in the field of Hybrid car the acceleration in the models have been increased by about 30% of the previous models. The high maintenance coat hurts the Hybrid car owner but if we closely look the Hybrid car battery needs to be changed after 100k-200k miles which is way too better when compared to the batteries of the conventional cars. With the rush of automobile manufacturers in the production of hybrid vechiles it is most possible that the increased competition would bring about a lot of technological growth and bring down the prices of the Hybrid car. In 2012 the combined Hybrid car market of US, Japan and Europe would grow to around 760 billion yen. As the growth of the automobile sector would transcend to its subsets sectors like electronic components industry the mutual benefits would bring about the decrease in the price of the Hybrid car electric and electronic components thus bringing the down the cost of maintenance. Huge efforts of car dealers offering consulting services to the conventional ICE car user is required to bring about the growth of Hybrid car at a much faster rate. This can happen only if The electric motor manufactures and the Automobile car manufacturers work in collaboration with each other. Motor manufacturers do not have the required expertise to manufacture the electric motor and the electronic components on their own , neither the electric components manufacturers have the proper visibility of the car market not can they forecast the demand of the car users. Even if the electric motor manufacture start a entire unit dedicated to the innovations pertaining to the automobile sector it has got no use unless it is not tested for its compatibility with the ICE engine. Hence with the exchange of knowledge and resources both sectors can mutually benefit from each other. This would ma ke possible for the hybrid technology to enter the small car market, which is the future of the whole automobile industry. At the current state the hybrid car industry is growing at a hefty rate and soon with the entry of the Hybrid car in the small car segment this future car would become the people¶s first choice.