Auto Knight

Hybrid Vehicles Market Share Growing

by Darren

Hybrid vehicles are becoming much more popular with consumers. Not only that, but the news is good long term. The growth of sales of hybrid vehicles is expected to reach 24% annually.

The global market for ultra-cheap automobiles is expected to increase by an annual average of 24 percent to reach 14 million units in 2020, while the compact car market grows to 38million units, 2.5 times the 2007 market, according to the Korea Automotive Research Institute, based on data from international consultancies, AT Kearney and Boston Consulting.

The analysis forecasts the ratio of new gasoline-powered cars will fall from 80 percent in 2007 to 40 percent in 2020. Meanwhile, the ratio of hybrid cars, which enhance fuel efficiency through the mixed use of gasoline engines and electric motors, is likely to rise 19 percent in Europe, 18 percent in the Americas, and 15 percent in Asia. According to AT Kearney, the automakers of emerging markets, including China, India and Russia, are expected to expand their market share from a meager nine percent in 2006 to 32 percent in 2020.

Hybrid vehicle sales remain one bright spot in an otherwise dreary time for auto sales. Customers want smaller cars that are more affordable and that is becoming more obvious by the day.