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Hybrid Market Being Driven By Californian Consumers May 2005Yosemite National Park, well known for its abundant natural resources, has introduced a free shuttle bus service for tourists, aiming to reduce air pollution by limiting the number of vehicles in the area.About two weeks ago, the park introduced 18 hybrid buses, highlighting the park's eco-friendly stance. The motor vehicle industry is edging toward a new era with hybrid vehicles, which combine a more fuel efficient engine with lower gas emissions. Drivers in California seem particularly environmentally savvy and favor this type of vehicle. "California comprises about 30 percent of our market for Prius sales in the United States," said Ed LaRocque, national manager of Toyota Motor Sales U.S.A. Inc., a subsidiary of Toyota Motor Corp. The brand is extremely popular across the United States. Prius sales topped 10,000 for the first time in March. In April, more than 11,000 units were sold and sales are growing at twice the rate in Japan. Toyota introduced a hybrid sports utility vehicle on April 15, making its sales target of 100,000 units this year easier to meet. Sales of hybrid cars are now doubling. In addition to Toyota and Honda Motor Co. -- current leaders in the hybrid car market -- Ford Motor Co. and General Motors are expected to break into the market, which sees 83,000 hybrid cars sold nationwide every year and is expected to continue growing. LaRocque said market forecasts predicted sales of hybrid cars would reach 200,000 in 2005, but he expected sales to exceed 250,000 next year. However, the car industry's optimism is not without reservation. An environmentally aware culture places greater demands on carmakers. In autumn, California introduced a law to reduce greenhouse gas emissions from vehicles by 30 percent over the next 10 years. In response, the car industry sued the state, insisting such regulation is the responsibility of the federal government not the state, and excessive regulation increases costs and eventually becomes a burden on users. The matter is currently in court. After a gas emissions reduction law known as the "Muskie Act" was enacted, Honda met the regulations by focusing on technological development and made great progress in the United States while the U.S. Big Three carmakers resisted the act. This time, carmakers from various countries are jointly opposing the law, but have come under fire from environmental groups. As long as some consumers continue to be aware of the need to limit greenhouse gas emissions, fueling the demand for hybrid cars, then they may become a voice for more stringent regulations. California faces these two sides of the coin in a market where carmakers' real performance is continually tested. SOURCE: Daily Yomiuri Online | ||
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