Are Hybrid Cars Economical Overall?

[fzubaidahmad]

The cars are at least Rs.1 mllion (10 lacs) more expensive than their comparable normal cars. If one does some calculations; with approximate daily fuel savings, and life of batteries, and (yet unknown) resale value of the car, etc.; then one will realize that it may not be economically feasible to buy hybrids. Not today; but maybe when hybrids are as cheap as their conventional peers. Hybrids do make environmental sense, and that seems to be the only reason to buy hybrid cars today.

[fzubaidahmad]

In the absence of reliable resale value of Hybrid cars, one can safely say that Hybrid cars are only economical to keep, if you drive it for long distances every day and even then keep it in immaculate condition, which is not easy, to say the least.

(P.S. If you pay Rs.1 million more for a Hybrid, achieve a daily fuel saving of Rs.500, and sell the car after 5 years for Rs.400,000 reduction in value, then you get a decent saving (Internal Rate of Return) of about 12% per annum. How reasonable are my assumptions, here?)

[zia1288]

Well the 1 million difference is a bit exaggeration to be fair. Aqua 2014-15 is available in range of 1.6 to 1.9 million range. While corolla gli/xli 2014-15 cost starts above 1.6 million too.

On the other hand prius 2014-15 are in range of 2.2 to 2.5 million range, civic 2014-15 is starts from 2.0 million and corolla grande 2014-15 starts from 2.1 million.

It should also be mentioned that in PKDM cars many options stripped off which are available in the JDM imports or even the JDM counterparts of the same vehicles.

[zia1288]

The major issue is of the parts and service of these cars. But since it has been a good 7-8 years since the hybrids are in Pakistani market and Toyota has also launched prius so the service problem is sorted out to some extent. Parts availability is still a concern though.

[fzubaidahmad]

Excellent observations, Zia sahib. What do you think about the resale value of these hybrid cars?

[zia1288]

Resale of the local cars (civic/corolla/city) is better then imports. But the penetration of the jdm imports is starting to capture market share. The situation is not same as it was 4-5 years ago. People do consider imports when making mind to buy car(s) specially used ones.

[fzubaidahmad]

Zia sahib in your opinion, what would be the comparable conventional car of Honda Vesel Hybrid 2014? I was looking at buying it up untill recently but then I started looking at the economics.

[zia1288]

Honda HR-V in the non-hybrid version of Vezel. It's available in 3.7 million without reg. and good vezel are available in 3.2 to 3.5 million range and another option is Suzuki Vitara which costs 3.79 million for the top of the line variant. BR-V has some time to be available but that is 2wd.

[arslansohail84]

90% of the vezels beeing imported in our market our fwd. nobody buys a 4wd drive vezel coz it is not a conventional 4wd vehicle, a drive shaft is used to make it 4wd. Which is connected with its front wheels.
This way All the jdms comes in 4wd even mira passo etc.
Although i know nothing about vitara so i might ne wrong but vitara also is not a conventional 4x4.

[fzubaidahmad]

Isn't Vezel an all wheel drive (AWD)??

[arslansohail84]

Buying a prius or vezel for fuel saving dosent make any sense coz at the end of the day u will end up losing more in resale.
I made the same mistake bought a 2011 model prius in 2014 for 2.6 million now its current value is not more then 1.8-1.9 million.
Vezel is a much better car overall and worth the price and i can tell you easily most of the vezels we see on ours roads r not bought for fuel economy but cant say this about prius.
Aqua and fit r better options if u want something for economy coz it has better resale.

[arslansohail84]

It comes in 4wd but its not a conventional 4wd. So nobody imports it here.
Jo 4wd vezel me ati hai vo mira se lekar her jdm gari me ati hai.

[zia1288]

Not all JDMs are awd, for example vitz 1.3L come in FWD and AWD versions.

[fzubaidahmad]

The whole thing is that Hybrids do not yet have an active resale market. When they do, then we will be able to check the economy. Ignoring the resale value, apparently, the Vezel seem to be lower priced than Vitara, CR-V and HR-V. Is that a fair conclusion?

[zia1288]

CR-V is a different class vehicle. And Vezel will be used not new.

[mehran]

In my opinion hybrids don't make much sense to me in Pakistan apart from the fact that they pollute less and might be more comfortable than local cars. As far as saving fuel money is concerned, a person will lose a lot of money if he buys a used JDM hybrid. It's better to buy a 2.5 million 0 meter Civic than buy a used 2.6 million Prius.

[fzubaidahmad]

Mehran sahib I had same views and I have shifted my focus to buying Oriel VTi, 1.8L.

[arslansohail84]

Bro the market for hybrid is quiet stable and it will not change anymore. All used imported cars priced more then 1.5 million will and always suffer more in resale coz no one wants to buy a100k pakistan driven jdm with no service history coz even a small problem could result in a heavy dent to ur pocket.
Locals will always have edge over jdms in resale coz of easy and cheaper maintainence.
Prices of jdms change if there is any currency fluctuation or change in duty structure which may also effect resale.

[dangtepau]

This post was flagged by the community and is temporarily hidden.

[mehran]

A very wise decision! There is no price for peace of mind. I hope you enjoy your ride! Drive safe & be happy