Driving Green, The growth story of Hybrid Vehicles

August 6, 2007
InvestorIdeas.com Delta, B.C.

This is Dawn Van Zant back with another edition of Driving Green at Investor Ideas

A report just issued by J.D. Power and Associates; 2007 U.S. Hybrid Vehicle Forecast Second Quarter Update, shows hybrid vehicle sales are on track to reach record numbers in 2007, with steady growth predicted for coming years.

Hybrid sales are expected to increase 35 percent compared with 2006. According to the report, “an estimated 187,000 hybrid vehicles were sold in the U.S. market through the first half of 2007, accounting for 2.3 percent of the total U.S. new light-vehicle market through June”.

Driving forces for the increased sales are noted as higher gas prices and incentives. Seven new Hybrid models are anticipated to come to market in the second half of this year.

Most popular consumer choice is the Toyota Prius selling 94,503 units through June 2007 and representing 50.6 percent of all new hybrid vehicles sold in the U.S. market in 2007.

Competition in the hybrid segment is projected to heat up as new models come to market.

Hybrids are also experiencing global growth as news from Japan's Honda Motor Co. (NYSE:HMC) on Thursday announced they will start selling hybrid cars in China later this year. As the number of cars is expected to grow significantly in China, eco-friendly choices are a must as China battles massive environmental and air quality concerns.

Toyota (NYSE:TM) was the first foreign car manufacturer to bring hybrid cars to market in China in late 2005 with its branded Prius model.

I have seen and heard first hand from the next generation the amazingly positive response to green cars including the Toyota Prius and hybrids. When I attended the auto show this spring, it was the younger minds and hands that wrapped around the idea of going green with enthusiasm. A demographic insight at a recent family lunch, a twenty year old at the table, that is in school with aspirations of being a doctor, dressed to impress, gave me raving report on how cool and quiet the new hybrids are.

I think the future of green cars is very much in the hands of the next generation and they are welcoming new technology with open arms, as us old dogs ponder our choices and wait to be hit on the head with imperatives.

A great resource for consumers interested in hybrids is www.hybridcars.com, which includes a buying guide as well as info on incentives offered.

To research our full list of Sustainable & Electric Transportation, Green Automotive Stocks – visit our stock directory at RenewableEnergyStocks.com.

http://www.renewableenergystocks.com/Companies/RenewableEnergy/stock_list.asp

I welcome ideas, suggestions and feedback as we travel together on the green highway.

dvanzant@investorideas.com.

Please read our full disclaimer at InvestorIdeas.com and the driving green Podcast page

http://www.renewableenergystocks.com/dg/default.asp

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