Peoples Willingness to Buy Hybrid Cars - Pros and Cons - Dissertation Example

The increased consciousness about global warming and the proactive thinking of the present-day environmentalists have led to the growing trend of hybrid vehicles and all-electric vehicles that tend to reduce fuel consumption and save the planet. This is a reflection of the change in the apathetic attitude of the present generation towards energy resources. This positive change has led to the innovation of different types of eco-friendly Hybrid Electric Vehicles (HEVs) and Plugged Hybrid Electric Vehicles (PHEVs).

These innovative cars are considered the cars of the millennium. Today many people tend to buy hybrid cars and it has been quoted that the sale of hybrid cars in America has raised to 313%, as the sale is 347102 cars in 2007 as compared to a sale of 84199 cars in 2001 (Frank J. DiMauro and Richard W. Berman, 2008). For the consumer who is sensitive to increasing oil prices, these eco-friendly cars appear as a boon to save their money in terms of fuel along with less damage to the environment.

Hybrid cars are based on renewable energy, where the car uses two different sources of energy and reduces the use of gasoline. The success and future of these cars depend on the willingness of the consumers to change from the proven combustion engine technology to hybrid technology. The reduced oil or gas fuel usage reduces carbon dioxide emissions that lead to global warming. The hybrid car's technology was sparked by the Toyota Motor Corporation in early 1992. The fundamental goal in the design of such cars was good mileage like conventional cars at the same time eco-friendly.

This initiative resulted in the development of the Toyota Prius in 1997 that was first introduced in Japan and later in the US during 2000. Inspired by the innovation in the design, consumers grabbed around 52000 first-generation hybrid cars in the very first year of its launch. Itazaki (2007) says that this first-generation Toyota Prius received excellence awards for its design and its eco-sensitivity. These hybrid cars use both gasoline and electric motors to generate the required propulsion power.

Hence they combine the benefits of both the hydraulic and electric technologies that lead to increased propulsion power, reduced fuel intake, reduced emissions, and additional or supplementary power from electric motors. As a result of these factors, hybrid cars started gaining popularity. Initially, the Toyota Prius was sold out for very little pricing. Later increased demand led to increased pricing and the market of hybrid cars has tripled in late 2004. According to a survey by Joe Vitale for Deollitte (www.deollitte.com ), 59% of the participants preferred to buy some type of electrified vehicles, 57% of them showed a strong preference towards hybrid gasoline and electric cars, 37% of the participants preferred the conventional cars and only 2% of them wished to buy all-electric cars.

The consumers of hybrid cars are generally more brand conscious and they consider the brand image as the critical factor in purchasing a hybrid car. Apart from brand image, the other factors that influence the consumers to buy hybrid cars are the in-dash technological advancement with plush interiors, perfect sound systems, conformable seating made of quality materials. The capability to own a higher-end hybrid car is being considered as a symbol of their social status.