May 18, 2024

Hybrid Vehicles Market Propelled by Growing Demand for Fuel Efficient Vehicles

Hybrid vehicles offer the advantages of both conventional internal combustion engine vehicles as well as electric vehicles. They provide better fuel efficiency compared to conventional vehicles without compromising on performance. The growing demand for vehicles offering higher fuel efficiency is driving the growth of the hybrid vehicles market.

The global Hybrid Vehicles Market is estimated to be valued at US$ 465.39 Bn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Government initiatives promoting green vehicles is one of the key trends positively impacting the growth of the hybrid vehicles market. Many governments across the world are providing various tax exemptions and subsidies for buyers of hybrid vehicles to reduce vehicular emissions. This is encouraging more consumers to opt for hybrid vehicles. For instance, the government of India is providing an income tax deduction of Rs. 15,000 on the interest paid on loans taken to purchase electric and hybrid vehicles under its FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme. Such initiatives are fueling the sales of hybrid vehicles.

SWOT Analysis
Strength: Hybrid vehicles have improved fuel efficiency and lower emissions compared to conventional vehicles. They emit 40-70% less greenhouse gases than gasoline-only vehicles.

Weakness: Higher initial costs compared to conventional vehicles limit wider adoption. Infrastructure for charging/fueling stations need further development in many regions.

Opportunity: Rising environmental awareness and government incentives/subsidies are encouraging more consumers towards eco-friendly vehicles. Technological innovations can lower battery costs and improve driving range over time.

Threats: Potential changes in fuel/carbon taxes and other policies could impact demand. Delays in developing affordable solid-state batteries and other frontier technologies.

Key Takeaways
The Global Hybrid Vehicles Market Size is expected to witness high growth. Hybrid vehicles combine the benefits of gasoline and electric power sources to provide better fuel efficiency than gasoline-only vehicles.

Regionally, The Asia Pacific region currently dominates the hybrid vehicles market with countries like Japan, China, and South Korea adopting hybrid technologies faster through supportive government policies and investments in charging infrastructure by major automakers.

Key players operating in the hybrid vehicles market are Wings Corporation, Lion Corporation, and Procter & Gamble Co. Wings Corporation is a leading Japanese manufacturer of hybrid and electric vehicles, known for reliable yet affordable sedans and SUVs. Lion Corporation is a South Korean startup that has developed proprietary battery technologies to enhance driving range and durability of hybrid electric vehicles. Procter & Gamble Co is an American conglomerate that has plans to introduce hybrid trucks and delivery vans beginning 2024 to reduce fleet operating costs.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it