Bring on the Hybrids- But who is going to Buy one?

If Toyota had even thought about bringing the Prius to the Indian markets then this latest development would have snuffed out even that remote possibility.

Our neighbours China have not taken too well with hybrids and in the third year of sales of the Toyota prius sales have fallen drastically[81%] this despite the fact that in the more developed markets the Prius is doing exceptionally well and is even becoming the favourite amongst fleet owners.

So what's so different in the emerging markets.Lets start with cost ,in the emerging markets after all the duties and taxes the hybrids cost as much as twice as what they do in the developed markets.Which buyer would go in for the civic hybrid at Rs.20 lakhs[approx $50,000] even if it has a Honda badge.Then as I have always been pointing out there is the diesel option.I just cannot see any justification in Hybrids[petrol] commanding such an exhorbitant premium over diesels.And to top it all diesels are now more fun to drive as well.

Would be interesting to see how Honda and toyota go ahead with their hybrid plans in emerging markets.But unless the prices of hybrids come down significantly in markets where it matters the most toyota's dream of selling a hybrid version of each of its product line-up would remain just a dream.

Indians prefer Value for Money than protecting the Environment

According to an Economic times survey conducted on the Indian buyer only 21% look for environmental friendliness as compared to 65% who look more at the value for money tag.Although this survey was not done keeping in mind cars and was more for groceries I have no doubt there would be any difference even if this would be the same trend if you were asking an average car buyer in India.

Value for money is the key term here i.e. getting the maximum bang for their buck.Hopefully car manufacturers do keep this in Mind.


Source:
Economictimes

Biofuels - Not so green an option.

Biofuel is the in thing right now with manufacturers deciding that sporting bio-fuel compliant stickers is the best way to protect the environment.

Though it would significantly lower the fuel bills of our country environmentalists are raising the question that biofuels would actually do more harm to the environment than be of any help.The biggest problem they say is that forest cover is being destroyed inorder to grow these biofuels thereby actually increasing the greenhouse emissions rather than decreasing them.Another worry is that do you want to feed humans or cars,with biofuels directly competing with food for human consumption.This is leading to an adverse effect in the form of rising food prices.Given a choice the government would rather prefer rising fuel prices to an increase in the prices of food.

Biofuel companies are painting a rosy picture by saying that wastelands[non-arable] would be used for cultivation of these biofuels but in reality it is the arable areas which is being used for cultivation in most areas.

Globally biofuels are now turning out to be a more costly affair so much so that the attraction in turns of lower fuel bills is actually decreasing and is turning to a point where it does not make any economic sense either.Global consumption of biofuels is thus on the downward path.

So is all this hype with regards to biofuels actually worth it in the end.