JPMorgan Predicts One in Five Hybrids by 2020

JPMorgan is predicting a sharp rise in hybrid vehicles by 2020. By 2020, one in five cars sold in the US will be hybrid. That will fuel a worldwide market for hybrid parts which will rise from just over $3 billion last year to over $23 billion by 2020.

Demand will be pushed by stricter government restrictions in the US and Europe. JPMorgan believes 11.28 million hybrid vehicles will be sold in 2020. That will account for 13.3 percent of worldwide sales.

The other half of the demand will come from lowering costs. JPMorgan estimates hybrid system costs; including batteries, motors and computer hardware, will drop from $5,667 to $1,890 per unit by 2020.

Also, don't forget rising fuel costs, which is already seen to be a major force behind hybrid car sales.

Source: Nearly 20% of U.S. cars will be hybrids by 2020, forecast says - Automotive News, Study: Hybrids to make up one in five U.S. car sales by 2020 - [2010 Toyota Prius] - MotorAuthority - Car news, reviews, spy shots, and Global hybrid sales to top 11 million units by 2020