Hybrid Cars

The Honda Insight was the first electric hybrid car in the US market in 1999. www.thedailystar.com

These cars operate from a rechargeable battery and gasoline. The engines are smaller so that they will be able to accommodate the 99% of time when the car is not going uphill or accelerating quickly. The battery is used to give extra exceleration power if needed. When the car is stopped, hybrid gasoline motors can shut off and run off their electric motor and battery. These cars are aerodynamic and the tires are often stiffer and inflated higher to reduce dragging.

According to a November 16, 2004 article written in the parents magazine, hybrid cars are no different from the gas powered car. It can accelerate just as quickly and travel just as fast on the highway and they are just as safe to drive. When the car comes to a complete stop, the engine shuts down completely and starts up again when the accelerator is pressed. Therefore, gas is not wasted and toxins are not emitted. www.ineed2know.org

There are 3 popular hybrids on the market today which are the Honda Insight coupe, Toyota Prius four door hatchback and the Honda Civic hybrid Sedan. There are 6 new hybrid models on the way to the market which will give families a larger selection to choose from. These cars will allow consumers to save on gas. The consumer gets more miles per gallon with the Hybrid car. These cars can go 600 miles before having to refuel with gasoline which will decrease the amount of money that the consumer will have to pay for filling the gas tank. Also, these cars produce about 90 percent fewer smog-forming tailpipe emissions compared with the average new car, according to Dave Hermance, head of Environmental Engineering for Toyota. Purchasing these cars will also allow the consumer to receive a tax break of $1,500. The price of these cars are normally between $1,500 - $2,400 more than the conventional cars. www.ineed2know.org

Hybrid cars can be considered as price elastic or price inelastic depending on the situation of the economy. For instance, if the price of gasoline continue to increase, the hybrid car would be considered as price inelastic because although the price of the hybrid car may increase somewhat, the consumer will be able to save money on gas. On the other hand, if the prices of gas are stabilized, the hybrid car will be considered as price elastic because if the price of the hybrid cars are on the rise and a conventional car costs less, the consumer will go with the conventional car.

The issues that could affect the demand for hybrid cars would be if the price of gasoline could be stabilized at a good price and the price of the hybrid was more expensive or cost the same as the conventional cars. The consumer would have to decide whether to purchase a conventional car in which they would have a much bigger selection or to purchase the hybrid car which has a much smaller selection to choose from. In this type of scenario, it would just depend on the consumer’s preference.

Some strategies that could be used enhance revenue would be to make prices more competitive, offer a bigger selection of vehicles and enhance advertising strategy.

Makers of the hybrid cars need to evaluate the prices of other cars that are comparable and base its prices upon those results. Also, creating a bigger selection of hybrids to choose from would also be a plus. Therefore, if there is a big selection of these cars, then the consumer can choose whatever he or she wants and will not feel limited. As for advertising, the hybrid dealers should offer consumers a chance to come out to the dealership to see the hybrid cars and give the consumer a chance to drive it.

Cost is another factor to consider when deciding whether to purchase a hybrid car or a conventional car. In today’s market, the price of hybrid cars range from $3,500-$6,000 more than their comparables with gas engines. Therefore, the amount of money that is saved on these cars may depend on the price of gasoline. For instance, if the price of gasoline decreases, it may take longer for the consumer to recoup the $3,500-$6,000 price difference. However, if the price of gasoline continue to stay on the rise as it is on today, the consumer will recoup the price difference at a faster pace. Another issue to consider as far as cost is concerned is the price of the battery for this car. Although this car may save the consumer money on gas, the battery for this car ranges from $1,000-$2,000 in price which is definitely much more expensive than a battery for a conventional car.

As for technology, although the hybrid cars operate via electricity, they do not have to be plugged in. The electric motor and gasoline engine work to together to provide power. The batteries for the electric motor is recharged by the energy that is produced as the driver of the car brakes or coasts.