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Hybrid Vehicle

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Abstract: As gas prices raise the average automobile consumer demands a better, more fuel efficient vehicle. This demand has forced manufacturers to begin producing hybrid vehicle; first four door hybrid sedan was unveiled by Toyota in 2000. The Toyota Prius’ success encouraged it competitors to roll out their hybrid cars as well setting a common standard for environmentally friendly and efficient vehicles. The relationship of consumer and manufacturer in the car industry on a macro level has always been one in relative equilibrium. As demand increases the car manufacturers have increased supply. The green movement in the United States pushed for hybrid vehicles and car manufacturers responded by producing more vehicles, making the …show more content…

This can be seen by the younger age group that has recently begun purchasing hybrid vehicles. Sales in 2005 of hybrid vehicles only 12.34% were purchased by individuals ages 30-39 and only 9.61% were purchased by individuals ages 20-29; in 2011 12.68% were ages 30-39 and 17.84% were ages 20-29. (Priuschat.com) The increasing attention the younger population places on environmentally friendly and less gas consuming vehicles the more likely corporations are going to spend time and energy devoted towards its research and development. Hybrid cars in themselves have become more and more fuel efficient from a Prius bought in 2005 which provided an EPA estimated 37.2 miles per gallon is in 2011 providing 42.7 miles per gallon. With media attention car manufacturers are increasing what the vehicle can do and making them more and more efficient. A major factor for individuals who are seeking to purchase a new vehicle is the cost of gasoline which has risen almost 32% since January 2011. The chart below indicates the trend of increasing gas prices. As prices increase demand inherently falls creating room for alternative products to step in. “16% of Prius buyers stated that the primary reason for buying the Prius was to save money on gas.”(inflationdata.com). The fact that a meaningful number of people can reasonably expect for their hybrid purchase to save them money is perhaps the most important indicator for future hybrid

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