Global Hybrid Cars - Sep'13


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Global Hybrid Cars - Sep'13

  1. 1. Copyright © 2013 RNCOS. All rights reserved. Unless otherwise indicated, all materials on these pages are copyrighted by RNCOS. All rights reserved. No part of these pages, either text or image may be used for any purpose other than personal use. Therefore, reproduction, modification, storage in a retrieval system or retransmission, in any form or by any means, electronic, mechanical or otherwise, for reasons other than personal use, is strictly prohibited without prior written permission. Whitepaper on Global Hybrid Cars
  2. 2. Overview Hybrid Car Sales (Million Units), 2011-2017 Global hybrid cars are gaining acceptance as consumers across the globe seek to lower their fuel expenditure and manufacturers are compelled to decrease vehicle CO2 emissions. In 2011, Hybrid car sales was 2.5 Million Units and is estimated to reach around 3 Million Units by the end of 2013. In future, the hybrid car sales market is anticipated to grow at a CAGR of around 11.5% during 2013-2017 to reach 4.72 Million Units by the end of 2017. Source: IEA-HEV, RNCOS Note: e/f = RNCOS Estimation/Forecast Market Driving Factors ▪ Increasing Global oil consumption and Shrinking of Fuel Reserves ▪ Rising awareness of the environmental issues and growing concern over the increasing carbon emissions ▪ Volatile Oil Prices ▪ Constantly introduced emission regulations in many countries ▪ Changing consumers' preferences ▪ Government Support (Subsidies and incentives) Whitepaper on Global Hybrid Cars
  3. 3. Top Sales Regions US leads the hybrid electric car sales market accounting for almost half of the total sales. Other major regions are Japan and Europe with 33% and 10% share, respectively. Hybrid Electric Car Sales by Region (%), 2012 Source: US Department of Energy Note: Data till June, 2012 Hybrid Vehicles Sales by Company in US (%), June 2013 Top Manufacturers Toyota leads the hybrid car market with 67% share, followed by Ford with 17% share. Other major players are General Motors, Nissan and Honda with less than 10% share each. Source: Whitepaper on Global Hybrid Cars
  4. 4. Opportunities Presently, the hybrid vehicles account for around 3% share in the total global car sales market. So, there is a huge scope for growth, especially in the emerging markets. Many countries across the globe are providing funding and tax exemptions for hybrid car sales growth in their country. For instance, Federal and Ontario governments are making repayable contributions of US$ 34 Million to Toyota Motors to build a hybrid car in Canada. The growth in automotive industry as a whole will provide growth opportunities for hybrid car sales in the coming years, especially in the Asian region. To remain competitive, the automakers are focusing on designing new hybrid vehicles that will cater to consumers in both mature and emerging markets while manufacturing them at low-cost using the most advanced technology. With rising oil prices and development of emission standards across the globe are forcing the auto manufacturers to come up with vehicles with low fuel consumption that will help in reducing both fuel consumption and CO2 emissions Leading auto companies across the globe are launching new hybrid models that will help in the growth of the hybrid car sales growth in future. For instance, Nissan will create hybrid versions of most vehicles in its lineup and will launch 15 new hybrids by 2016. Similarly, Mazda has planned to launch its first hybrid car this year (2013) in Japan. Whitepaper on Global Hybrid Cars
  5. 5. Challenges Still, the cost of hybrid models is significantly higher than the normal models for the same car which is affecting the mass adoption of these cars, especially in the emerging markets. For instance, Ford Fusion hybrid costs US$ 3,480 more than the non-hybrid version up front. Europe accounts for the 3rd major sales market for hybrid car sales. However, the present Eurozone financial crisis has adversely affected the operations of many global automakers, especially GM and Ford, who have a significant exposure to the market Availability of alternative fuel options such as flex-fuel, hydrogen fuel, CNG etc are affecting the hybrid car sales market. With advancement in technology, engines are providing better fuel economy on the available fuel sources such as diesel, gasoline etc. Electric Cars is giving a direct competition to the growth of hybrid cars as these are the pure green vehicles with zero emissions leading to more acceptance than the hybrid cars. Moreover, the price is also competitive compared to the hybrid vehicles. Auto manufacturers are facing technological challenge in making the hybrid cars with better mileage and fuel options. For hybrid vehicles, gasoline engines have good fuel performance. But in terms of technology, the diesel hybrid can increase the fuel economy a bit more than the gasoline engine. However, for the former, the company needs to have the emission cleaning system to make a contribution for a cleaner environment. Moreover, the type of cars preferred varies depending on the region. For example, hybrids are popular in Japan, Europe and the US. Further, in these markets, the type of vehicles customers prefer is somewhat different. Compact cars are preferred in Japan. Since the fuel cost is very high, people largely opt for hybrids. But in the US, people prefer bigger cars such as the Camry. Whitepaper on Global Hybrid Cars
  6. 6. Future Outlook Global Hybrid vehicles market scenario seems somewhat dice for the coming 2-3 years with weak demand and significant challenges faced by the industry. Over the next 5-7 years, the hybrid car sales growth will depend on the decline in the cost and advancement in technology. With the time and research on the development of the battery systems of hybrid cars, the overall cost of batteries and total cost of ownership is expected to decrease significantly. By 2017, it is expected that the total cost of ownership of plug-in hybrid electric vehicles with a battery will be lower than an internal combustion engine vehicle. Besides, this government funding and tax exemptions will fuel growth in the hybrid car market. However, competition will remain tough with advancement in alternative option vehicles and growth in pure electric vehicles which will affect the growth of the hybrid vehicles market. Regionally, growth prospects are bright for hybrid car sales in asian market. However, companies have to develop hybrid vehicles which are affordable, user-friendly and environment-friendly. Whitepaper on Global Hybrid Cars
  7. 7. RNCOS is a leading business consultancy services company believes that in today's cut-throat environment, companies need to understand their business environment better. Critical questions that businesses need to address: GROWTH PARTNER What geographies to target? How to identify & increase the customer base? How to enhance the brand image? How to launch new products and find distributors? What is the current market structure and market size? We help you make informed decisions through the practical application of research, hand holding you to your success… We understand your immediate needs and your long-term goals and objective and work with you on how to accomplish them. RNCOS blends the best of strategy consulting with the best of market research to provide organizations with accurate, succinct answers to their most important business questions. What is the market size Similar products in the market Structure of the market Who are your buyers Features, attributes & market share of these products Buyers’ buying behavior Customer preferences Expectations from the product Price range of these products Most suitable distributors and channels for your business. Financial & strategic analysis of existing competition Analyzing their strength, credibility, scale of operations. Acceptance level among customers Assisting in distributor selection. New market entrants Emerging competitors Whitepaper on Global Hybrid Cars
  8. 8. RNCOS is a business consultancy services firm that provides services to clients across the Globe. With more than a decade of industry experience and expertise, we boast of a distinguished clientele' across multi geographies and industry verticals. Our strength lies in the healthcare sector besides Retail and Information Technology. Be it market testing, product launch, competition assessment, customer satisfaction study, pricing analysis or any other requirement, RNCOS custom research team acts proactively to fit in the best possible solution for our valued clients. We believe in multi-level client interaction and complete transparency from the project commencement till effective implementation, thus ensuring total customer satisfaction at the end. Having served close to 200 renowned as well as start-ups globally, our strength lies in multilingual and multi geography tie-ups with leading market survey partners who assist us in gaining vital primary insight straight from the horse's mouth. Vartika Sehgal Sr. Research Specialist RNCOS B-129, Sector - 6, Noida - 201301 Phone: + 91 (120) 4224700 Fax: +91 (120) 4224707 Email: Website: Whitepaper on Global Hybrid Cars