Frost: U.K. One of Top Five Global Hybrid Electric Vehicle Markets

December 8, 2007 // Published as a news service by IHS

Analysts said developed countries are keen on promoting HEVs, while developing countries are unable to enforce their use.

The increasing demand for and cost of gasoline, along with environmental concerns, are driving a market that is in need of alternative solutions.

Recent analysis from Frost & Sullivan found that growth of the world hybrid and electric vehicle battery market significantly exceeded all the hybrid sales forecasts.

This market has witnessed a steady growth pattern from 2000, without even a slight decrease in growth rate. In 2006, HEV sales grew approximately 23% in developed countries, such as the U.S, U.K. and Japan.

HEVs combine the benefits of gasoline engines and electric motors and can be configured to achieve improved fuel economy, increased power and better performance as a result of low greenhouse gas (GHG) emissions.

Analysts said the concept of hybrids is used in a wide range of vehicles, including bicycles, passenger cars, railway locomotives, buses and others. Among this wide range of vehicles, passenger cars - that are segmented as light-weight HEVs - are more popular in this market.

"The advantage that a HEV offers with regard to construction and design aspects is that the engine designed in a HEV is small, which makes these vehicles more efficient," said Suba Swaminathan of Frost & Sullivan.

Analysts said there are several advantages of small engines in HEVs:

• The smaller the engine, the smaller the weight. This makes HEVs lightweight - compared with conventional vehicles - which makes them consume less energy than the latter during uphill drives.
• The internal components and pistons are small for a small engine, and therefore, less energy is consumed for its operation.
• The displacement of engine cylinders are small for a small engine, and hence fuel usage is reduced.
• HEVs use a regenerative braking mechanism, where energy is stored in the battery when the brake pedal is applied. This stored energy is utilized for the vehicle's operation, thereby minimizing the strain on engines.
• When a HEV is stopped at red lights, the engine can be turned off and operated on electric motor and battery, thereby minimizing the fuel usage to a significant extent.

Electric cars such as G-Wiz, Sakura and NICE Mega City, along with hybrid cars including Toyota Prius, Honda Civic, Lexus RX and GS Hybrids are exempted from the London Congestion Charges. This exemption would enable London commuters to potentially save more than £1600 when they drive in and out of the city center. Analysts said such promotional features are likely to boost the electric vehicle (EV) and HEV market in the U.K.

"Although hybrids are available in the automobile market for the past 10 years and are not as popular as conventional vehicles, the advantages of using hybrids are more with regard to economical and environmental aspects," said Swaminathan.

"One of the advantages of using HEVs is improved fuel economy. Hybrids require much less fuel than conventional vehicles, offering greater savings on fuel costs. Another advantage is improved efficiency. In fact, they offer more mileage compared with conventional vehicles, which makes HEVs require minimal gas.

"They are environment friendly; hybrids have much less greenhouse gas (GHG) emissions, and are therefore capable of reducing the smog-forming pollutants in the atmosphere ... Finally, many governments across different countries promote HEVs by offering tax credits and incentives that make HEVs affordable."

These advantages and technical aspects ensure that HEVs are the most compatible next-generation vehicles, which are user-friendly, as well as environmentally friendly. With the Asia-Pacific countries joining the race, the growth of HEVs is expected to accelerate to a significant extent in the next five years.

Source: Frost & Sullivan.