Price Dropping for Hybrids - 10/24/08

A report published this week states the cost of building hybrids will fall by two thirds within 10 years.

Consultants at JP Morgan Chase predict the cost of building a gas-electric hybrid engine will drop by more than 60% and by 2018 hybrid vehicles will be 10% of the global new car market.

Experts expect hybrid sales to total 9.6 million over the coming ten years.  Increased production and greater economies of scale will lower prices.

Japanese automakers lead the hybrid market.  Toyota sold over one million of their Prius hybrids earlier this year.

Toyota believes its third generation hybrid will be as profitable as one of its saloon models.

Cost for building the engine and batteries have dropped by half since the Prius was launched.  Toyota expects the third generation hybrid to reduce costs by a further 50%. 

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