Sales of Hybrid Electric Car To Soar in Asia-Pacific in Coming Years

The lower price of hybrid electric cars in comparison to other electric cars is one of the major factors fueling their sales across the world. In terms of costs, these vehicles are positioned between diesel and petrol-powered vehicles and fully electric cars including battery electric vehicles (BEVs), which generally require huge investments from manufacturers in technologies and batteries. For example, a typical hybrid electric vehicle costs $26,000 and it is therefore, significantly more affordable than a BEV, which is usually priced at $43,000.

Moreover, these vehicles are also designed similarly to traditional vehicles, which massively contributes to their soaring worldwide popularity. Besides this factor, the increasing implementation of strict emission regulations, soaring gasoline prices, and burgeoning requirement for passenger cars, especially in developing countries such as India, China, Brazil, South Korea, and Indonesia, are also creating lucrative growth opportunities for the players operating in the hybrid electric car market. Many developing countries are rapidly adopting the emission standards enacted by the European Union. 

Additionally, they are aiming to ban the use of oil and gas-powered cars in the forthcoming years. For example, India announced in June 2017 that it intends to ban the sales of diesel and gasoline-powered cars by 2030. Similarly, the Chinese government also aims to ban the manufacturing and sales of oil and gas-powered vehicles in the coming years. Due to these factors, the revenue of the hybrid electric car market is expected to grow from $57.2 billion in 2017 to $138.0 billion by 2023.

The market is also predicted to progress at a CAGR of 16.7% between 2018 and 2023. Depending on hybridization, the market is divided into full and mild categories. Between these, the full category held the larger share in the market in the years gone by. On the other hand, in the coming years, the mild hybrid electric car category is predicted to register faster growth, primarily because of the lower prices of these cars in comparison to the full hybrid variants. 

Geographically, Europe will be the fastest growing region in the hybrid electric car market in the forthcoming years, as per the forecast of the market research firm, P&S Intelligence. This is credited to the provision of various financial and non-financial incentives such as subsidies for the purchase of hybrid electric cars, free parking, congestion charge waivers, and road tax exemptions by the governments of many regional countries. In addition, the growing public awareness about the environmental degradation caused due to the extensive usage of oil and gas-powered vehicles and the eco-friendly nature of hybrid electric cars is also driving the expansion of the market in the region.

Hence, the sales of hybrid electric cars will soar sharply in the coming years, mainly because of their lower prices than other electric cars, the increasing concerns being raised over the environmental degradation caused due to the use of diesel and petrol-powered vehicles and the implementation of strict emission norms and various supportive policies regarding the adoption of these vehicles by several governments across the world.