Macro-Trend Analysis of Hybrids in the Automobile Industry

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Hybrid Vehicle Market Analysis

As gas prices continue to rise, people have started to trend toward more energy efficient means of transportation. Hybrid vehicles have an electric motor along with rechargeable batteries and have an increased efficiency of up to 50 percent. There is an onboard computer that switches between gas and electric power. The hybrid car runs on the energy of the battery when it is cruising, using less energy. When it needs additional power, the fuel engine is used for energy purposes.

The market for hybrids can be analyzed by looking at the macroenvironmental trends (macro trends). According to Mullins and Walker (2010), “the macroenvironment can be divided into six major components: demographic, sociocultural, economic, technological, regulatory, and natural environments” (p. 97). Understanding these trends will help managers learn how to market these vehicles successfully.


The Baby Boomer generation was born between 1946 and 1964 has largely impacted the economy and will continue to for some time to come. This generation allows for an increase in the 45 to 85 year old population. There is also an increase in the Hispanic market in the United States (U.S. Census Bureau). Marketers of hybrid vehicles have to target this market and make the vehicles more appealing to them in order to leverage their population and maintain an increase in demand. There is a population trend toward warmer climates and coastal regions in the United States (U.S. Census Bureau). The demand for hybrid vehicles in these areas and in the more congested urban areas will increase in the next few years.


Understanding the technology that goes into hybrid vehicles has been one of the biggest challenges facing the market. Some people believe that the hybrid’s battery may run dry and leave them stranded. One of the biggest concerns is that the price of hybrid vehicles is too high and the cost savings associated them will not make up for...