Hybrid Vehicle Industry Analysis

In this section, information will be provided that show that there has been development and evolution in the hybrid and electric vehicle industry. Data will be offered that illustrates that there has been change in the HEV industry, investment, development, and most importantly in production and output in the last several years. At the start of the Great Recession of 2007-2009, cost per oil barrel began to skyrocket. As a result, governments began investing heavily and subsidizing greatly alternative fuel programs. The federal government began investing in clean renewable energies. Diversifying fuel sources means greater energy security and less green house has (GHG) emissions. The United States Department of Energy revealed that it only costs $1.18 to drive an electric vehicle the same distance a conventionally-fueled vehicle, with $2.09 of gas (National Conference of State Legislatures, 2015). Along with hybrid and electric vehicle development, the …show more content…
The National Research Council projected in 2010 that current battery costs, set at roughly $875 per kilowatt-hour in 2010, would decrease by 35 percent by 2020 and as almost 50 percent by the 2030s (National Bureau of Economic Research, 2012). Hybrid vehicle battery technology has even more potential in growing, with the highest grossing model of hybrid vehicle, the Nissan Leaf having a $750 per kilowatt-hour battery, and the Chevrolet Volts having a $500-$930 per kilowatt hour battery (National Bureau of Economic Research, 2012). To increase energy efficiency, hybrid and electric vehicle bodies are also being increasingly constructed from polymers, aluminum, or composite body panels. Lithium-air batteries have a higher energy density than a conventional lithium-ion battery, meaning it has five to ten times more energy than regular lithium-ion batteries (National Bureau of Economic Research,