Summary:
This article is giving consumers more insight on Hybrid cars, in particular how the Toyota has used its innovation and technology to its most fullest advantage and marked itself as the leader in Global market. The author is full of praise for Toyota strategies to capture the market share. It is leading with example as it plans to offer its product extension Vitz- known as Yaris outside Japan – in all vehicle classes. This will mean that it is no longer a niche market but the time has come for the hybrid to attract, lure and go for mass market.
The mass production will certainly achieve the economies of scales by reducing the cost down. For this, Toyota is aiming to quadruple its sales about 10% more than today, by 2010. To make it affordable for everyone its cutting down some of extraneous features such as battery and reducing the size of different parts of the battery, which are raising the costs of hybrid’s about 5000$. Toyota’s main rivals are wakening up from a total missed opportunity and trying to catch up some market share. Nissan, Ford and GM are on their way to launching their hybrids and they have cut the deals to use Toyota’s Hybrid technology. Not everyone is on the line to compact vehicles for Hybrid fearing higher costs. However, there is a tax deduction which ranges from 500$ to 3400$ depending on the fuel efficiency of the car which would be beneficial for some real savings until 2006, when the new energy bill is implemented. Switching to lithium battery would too cut estimated 2,500$.
Personal Opinion: Hybrid car’s purchase, maintenance and insurance costs are much more than other non-hybrids, for example compared to Honda Accord and Ford Escape Hybrid cars example. Hybrid cars are more costly to buy compared to other cars in the market. Secondly, the maintenance and insurance cost does not do a great deal of saving but it adds on to Total cost. Unless, for tax-deduction energy bill passed which would save some amount of money customers can look for little less engine power thus savings to a great extent. Also, diesel cars and non-hybrid cars have resale value, which in Hybrid cars is not sure as its market is small. There are other ways of savings besides eyeing only on Hybrids i.e. being gentler on driving style would certainly save a lot. But for the next few years Toyota is going to reap the fruits for its long time endurance and bet on Hybrid.
By:20700795,Entry 10
