Stringent environmental regulations by national agencies in Europe have led to increased adoption of hybrid cars, which is expected to favorably impact the hybrid car market growth. In addition, fluctuating crude oil prices is another factor driving growth in this market. However, replacement of expensive batteries in hybrid cars is expected to hinder market growth. In addition, high cost of hybrid cars are also expected to act as an inhibitor to market growth. Furthermore, fuel injected cars as against hybrid cars exhibit high acceleration, and may hinder the market growth over the next few years. Several economical and alternative fuel options such as CNG and LPG pose a challenge to market growth in coming years. Scarcity of re-filling stations, particularly in developing countries such as India and China is also expected to pose a challenge to the hybrid car market.

Asia-Pacific is expected to provide significant opportunities to market growth over the forecast period owing to increase in automotive production, growing need for fuel efficient vehicles, and rising fuel costs in the region. Developing countries such as China, India, and Brazil are expected to emerge as promising growth markets due to substantial automotive production coupled with rise in per capita income of individuals in these countries.

Key market participants include Nissan Motor Company, Ford Motor Company, Hyundai Motor Company, Honda Motor Corporation, Lexus, Mercedes, General Motors, and Toyota Motor Corporation.

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, the company offers market intelligence studies ensuring relevant and fact-based research across a range of industries including technology, chemicals, materials, healthcare and energy.