This whitepaper provides an overview and analysis of the global hybrid car market. It finds that hybrid car sales were approximately 2.5 million units in 2011 and are estimated to reach around 3 million units by the end of 2013. The market is anticipated to grow at a CAGR of 11.5% from 2013 to 2017. The US currently leads the market with around half of global sales, followed by Japan and Europe. Toyota is the leading manufacturer with 67% market share. Factors such as rising oil prices, environmental concerns, and government incentives are fueling market growth, though high hybrid vehicle costs and competition from electric cars present challenges.

1. Whitepaper on Global Hybrid Cars
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.

2. Whitepaper on Global Hybrid Cars
Overview
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.
Hybrid Car Sales (Million Units), 2011-2017
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)

3. Whitepaper on Global Hybrid Cars
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
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.
Hybrid Vehicles Sales by Company in US (%),
June 2013
Source: c1gas.org

4. Whitepaper on Global Hybrid Cars
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.

5. Whitepaper on Global Hybrid Cars
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,
Challenges
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.

6. Whitepaper on Global Hybrid Cars
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.

7. Whitepaper on Global Hybrid Cars
GROWTH PARTNER
We help you make informed decisions
through the practical application of research,
hand holding you to your success…
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:
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 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
Structure of the market
Who are your buyers
Buyers’ buying behavior
Expectations from the product
Similar products in the market
Features, attributes & market share of
these products
Customer preferences
Price range of these products
Most suitable distributors and
channels for your business.
Analyzing their strength, credibility,
scale of operations.
Assisting in distributor selection.
Financial & strategic analysis of
existing competition
Acceptance level among customers
Emerging competitors
New market entrants

8. Whitepaper on Global Hybrid Cars
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: marketing@rncos.com
Website: http://www.rncos.com