The spiraling cost of gasoline and the increasing global concern for cleaner fuels has been the single most important factor for both institutional as well as individual consumers alike to influence buying decision for cars in the coming years. For the automotive industry in general and Toyota in particular the main sustainability challenge is climate change because of rising emission due to greenhouse gases. Because of a substantial contributor to greenhouse gases, the automotive industry is attracting strict regulations in many nations. The industry's increased dependence on oil augments the challenge since governments across the world are looking forward to diversify their energy sources. To tackle these problems, Toyota should improve fuel economy and reduce the carbon concentration in their product portfolio by way of alternative propulsion systems like the Hybrid Car (Sustainability Leader: Toyota Motor).
             The Market and Consumer Preferences of Hybrid Vehicles
             The market potential of hybrid vehicles is restricted because of severe competition from the conventional non-hybrid vehicles that are comparatively cheap. Product improvements over the years have led to vehicle quality is superior compared to what has been earlier. Conventional engine technology has also progressed in tandem while hybrid concepts were being worked out and in fact, major manufacturers have built conventional vehicles which meet current emission standards that can be called 'environmental' vehicles. Off-take of hybrid vehicles with considerable electric range shall be slow in the initial stages. This has been reported in a recent study in support of the IEA Hybrid Vehicle whose purpose was to find out global influence factors on the production and sale of hybrid vehicles. The report states that consumer readiness to shell out a higher price for fuel economy and emissions improvements is limited. (Hybrid Market Potential)
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