In addition to developing gas efficient vehicles, the push is on to produce cheap hybrid cars for mass production. The cost remains relatively high for hybrid technology, despite it being on the road since 1997 and improved technology. Vehicle weight continues to be one of the roadblocks to cheap hybrid cars, and with more people believing in the technology, they still want roomier cars with power consistent with conventional gas and diesel engines.
Honda was reportedly aspiring to release cheap hybrid cars in a version of its Fit, which would sell for under $12,000. However, the gasoline version gets respectful mileage and considered a compact vehicle, which may not be conducive to increased sales in the market for those who typically drive subcompacts. The cost would be less than $2,000 more than the conventional version of the vehicle while offering slightly higher fuel economy.
As demand for hybrid vehicles continues to grow, especially in markets with extremely high gas prices, more companies are dedicating more of their resources on developing cheap hybrid cars. Many consumers also see hybrid technology as more than a status symbol or as a means of helping the environment.
Vehicle Cost Offsets Fuel Cost Savings
One of the sticking points in marketing hybrid vehicles is the fact that the price of the vehicles, along with increased insurance rates and service, was offsetting the benefits of higher fuel economy. By developing cheap hybrid cars, a company can attract the consumers that not only want to eliminate air pollution, but also want to reduce the ownership costs over the life of the vehicle.
Many of the younger drivers would welcome the opportunity to do their part for the environment but can’t afford to buy most of the current crop of available cars. With the introduction of cheap hybrid cars the overall costs of a hybrid can bring it into line with non-hybrid vehicles that are demonstrating vastly improved gas mileage.
The technology is in place for hybrid vehicle operation and many claim that cheap hybrid cars are in the future. As newer technology is developed to provide a seamless transition from gas to electric motors in the vehicles, production costs will decline, accompanied by the overall costs.
However, as consumers show reluctance to give up the luxury of the larger vehicles to which they become accustomed, the market for cheap hybrid cars that are currently considerably smaller, may not be what companies need to benefit from their development.
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