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Hybrid Hypocrisy:
01 Apr 2014 15:27:32
Hybrid Car Hypocrisy: The other side of the story


• Performance of most hybrids is between 75% – 87% of the rated mileage – Automobile authority Edmunds.com

• Deliver less than 60% of Environment Protection Agency (EPA) (of the United States) estimates while driving on city streets.

• In Sri Lanka, due to tax concessions, a 1500cc hybrid car is taxed at 59.75% of its value while the 1000cc conventional car is taxed at a whopping 200.65%!

April 01, 2014 (SLBO) - With ‘green’ concepts taking hold, sales of hybrid vehicles have soared in many countries including Sri Lanka, boosted by tax concessions and eager hopes of fuel and cost savings but the question whether most hybrids live up to their reputation has been debated across the world.



From 2011 to 2013 a total of 15,181 hybrids have been registered with the department of motor Traffic. However, more and more customers of hybrids are becoming dissatisfied complaining that their vehicles are not meeting the much hyped-about fuel and resultant cost savings whilst more and more automobile experts and researchers are pointing towards safety lapses inherent to hybrid technologies.



In its Budget for 2011, the Government announced that electric and hybrid vehicles will be given tax concessions and brought the compound tax rate of such vehicles to less than 1/3 of that of similar conventional cars.

Several published data suggest that all is not as ‘green’ with hybrids as their manufacturers or smooth-talking marketers would lead us to believe. Considering the significant loss of tax revenue to government coffers as a result of significantly lower duty regimes enjoyed by hybrids (especially with demand for them increasing substantially), time has come to take stock of whether this loss of revenue can be justified and to explore some issues with regard to hybrids, which many consumers in Sri Lanka do not seem to be aware of.

Damning indictments by automobile experts

Firstly, the actually mileage of a vast majority of hybrids is significantly less in real-life conditions, contrary to the impressive figures that their manufacturers like to trumpet about. According to the Road Test Editor of the well-known automotive authority Edmunds.com – John DiPietro, “Most drivers (of hybrids) will only get between 75% – 87% of the rated mileage, with individual variations based on driving habits and traffic route.” (See http://www.wired.com/cars/energy/news/2004/05/63413?currentPage=all)

It should be noted that the point made by DiPietro, regarding mileage of hybrids being quite dependent on driving habits, could create incentive for drivers of hybrids to drive more slowly, thereby adding to the already ‘till kingdom come’ long traffic jams in Colombo.

Further backing up the revelation by DiPietro, research conducted by Consumer Reports – an independent product-testing organization – reveals that hybrid cars deliver less than 60% of Environment Protection Agency (EPA) (of the United States) estimates while driving on city streets.

“… In Consumer Reports' real-world driving test, the Civic Hybrid averaged 26 mpg in the city, while the Toyota Prius averaged 35 (miles per gallon) mpg (approximately 11.05 kilometres per litre), much less than their respective EPA estimates of 47 and 60 mpg (19.98 and 25.51 kmpl)…. ,” states the report.

In another damning indictment of the so-called superior environment-friendly properties of hybrid vehicles, Carnegie Mellon University Mechanical Engineering and Policy Professor Jeremy Michalek stated, “Hybrid and plug-in vehicles cost more without much benefit to the environment.”

Considering these statements by experts and research data, it appears that while hybrid vehicles do offer superior mileage than conventional vehicles in many cases, the figures advertised by vehicle manufacturers should be taken with a ‘pinch of salt’ and are likely to substantially differ in reality.

Discrimination against the ‘less affluent’?

While relating this to the Sri Lankan context a number of significant concerns arise. It should be noted that low-end Japanese hybrids (mainly from Toyota and Honda) constitute a lion’s share – over 95% in 2013 – of hybrid registrations in Sri Lanka.

One would assume (with good reason) that the disparity between actual mileage and that advertised by car manufacturers is likely to be greater in the case of these low-end vehicles.

This also leads to the all-important question; can we justify the substantial tax concessions given to hybrids? In Sri Lanka, due to tax concessions, a 1500cc hybrid car is taxed at 59.75% of its value while the 1000cc conventional car is taxed at a whopping 200.65%! With demand for hybrids increasing more than 50% last year (in comparison to 2012) and the list prices of hybrids being higher, the loss in terms of tax revenue (to the government) is likely to amount to many tens and hundreds of millions of rupees.

It should be noted here that as the list prices of hybrids are substantially higher than that of conventional vehicles, the outflow of foreign currency from the sale of hybrids is therefore significantly higher than in the case of conventional vehicles. With the country having to regularly defend the Rupee against depreciation due to foreign currency outflows – thus depleting the country’s reserves– maybe it is time to assess how ‘green’ this policy is to Sri Lanka’s financial interests.

Considering doubts expressed by experts regarding mileage figures of hybrids and the fact that tax concessions for hybrids are given on the basis that they help to reduce the country’s ever-burgeoning petroleum bill over the long term, it appear that such huge tax concessions on hybrids are difficult to justify, to say the least.

It should not be forgotten that particularly the Honda Civic and the Honda Insight did not live up to expectations, especially in the local market. Furthermore on 26 February Honda US announced the discontinuation of Honda Insight after years of underperforming. (Honda Insight Hybrid meets its end - http://www.chicagotribune.com/classified/automotive/chi-honda-insight-hybrid-end,0,7292264.story)

One should also take into consideration that hybrid vehicles are typically bought by more affluent customers while the less affluent stick to small vehicles with good fuel efficiency. Even with tax reductions, hybrids are typically still a far too heavy a burden for the slim wallets of less affluent customers. Therefore, especially with hybrids failing to deliver the level of expected performance (with regard to substantial reduction in fuel consumption) one could interpret the current tax structure as being unfair and unreasonable in the interest of a majority of ordinary Sri Lankan customers.

One could argue that if higher taxes are imposed on hybrids bought by more affluent consumers, the government could, without reducing its revenue, reduce at least fractionally the tax rates on smaller vehicles with high fuel efficiency bought by less affluent customers (as reduction in revenue from smaller vehicles could be offset by higher taxes on hybrids).

More worryingly, exploiting the ‘hybrid tag’, local auto industry players have brought in super luxury vehicles of brands such as Lexus, Porsche, Mercedes & BMW at about 100% duty on the CIF value. As most of these super luxury vehicles have 4000cc plus engines to support the hybrid system in place there is little possibility of fuel saving from these cars and little ability to justify this absurdly low duty. Authorities clearly seem to have been misled to allow such duty concessions with the ‘green tag’ being used as eyewash to enable ‘highway robbery’ of the country’s coffers.

Safety hazards

Secondly, there are several safety concerns with regard to hybrids, which despite being dismissed by manufacturers of hybrids, are still of critical importance to consumers.

Due to the amount of power used by hybrid vehicles (with some using as much as 650 volts) an electric shock (though the scenario is unlikely) from a hybrid vehicle is considered sufficient to result in a fatality.

“Some emergency responders have raised questions about the likelihood of battery explosions or leaks, with the leading concern being electrocution hazards if high-voltage cables are exposed to bare metal, passengers, or rescuers. As more manufacturers plan to add hybrid models to their line-ups, scrutiny on this latter issue has been increasing,” (see http://editorial.autos.msn.com/article.aspx?cp-documentid=435450 )

“The voltage in most hybrid batteries can deliver a lethal shock, much like that of an electric chair. What's more, the voltage from a hybrid battery is Direct Current (DC), which carries more of a wallop than Alternating Current (AC). The threshold voltage where DC becomes dangerous can be as low as 55 to 60 volts, compared to 110 volts for AC. Ordinary 12 volt DC car batteries and electrical systems pose no danger, but the high voltage secondary ignition system can give you a nasty shock (though the current is usually too low to cause serious harm),”(See http://www.aa1car.com/library/hybrid_hazards.htm)

While this is unlikely to be much of a concern in developed countries in which hybrids are popular and people are better informed, the higher perceived probability of an electric shock could create complications and increase response time in case of an accident.

In Sri Lanka, with untrained motorists or pedestrians playing the role of the ‘good Samaritan’ in rescuing those injured in motor accidents in many cases, the probability of such an unfortunate event occurring would probably be quite higher than abroad and should be taken into account.

With the engines of hybrid vehicles producing far less noise than conventional engines, hybrid vehicles pose a very real threat to both completely visually impaired pedestrians and to those with poor eyesight crossing the road. Tests have shown that blind pedestrians are often completely unable to hear the approach of a hybrid vehicle in urban conditions. (See http://www.greenfootsteps.com/hybrid-car-disadvantages.html )

Even in developed countries many incidents have been reported of visually impaired pedestrians almost being run over by hybrids. In Sri Lanka, with facilities for the visually impaired being rudimentary at the very best, the risk of such accidents would be far higher.

While it should be unfair to attribute these safety concerns to defects in hybrids, with the increased risks in the local context not largely due to the nature of hybrids but due to the situation that exists in Sri Lanka, reality has to be accepted. Haphazard conditions in Sri Lanka do not appear to be conducive to some aspects of hybrids.

Mistaken beliefs

Thirdly, there is a view that hybrids have superior environment-friendly properties in every department, in comparison with conventional vehicles. This is actually incorrect. Studies by reputed institutions of the calibre of MIT (Massachusetts’s Institute of Technology) and Carnegie Mellon University have shown that pollution and energy consumption from manufacture of hybrid vehicles are actually greater than for conventional cars.

In addition, a popular website (www.hybridcars.com) quite succinctly summarizes issues with regard to disposal of the highly toxic batteries of hybrid cars (for which Sri Lanka incidentally appears to have next to no capability – another cause for concern) stating, “Some environmentally motivated car buyers are concerned about trading one problem for another. They worry that a hybrid utopia might turn into a toxic nightmare when the metal hydride batteries in today’s hybrids end up in landfills.” (http://www.hybridcars.com/battery-toxicity/)

It is also important to note in this context that replacement cost of a battery of a hybrid car can be extremely high – nearly one third of the cost of the car according to some estimates, although ‘cheaper’ but poor quality models are sold in some parts of the world.

Further, with regard to environment friendly properties of hybrid vehicles, it is interesting to note that Jeremy Clarkson – the presenter of BBC’s highly popular Top Gear programme – has repeatedly rejected hybrid vehicles as the most environment-friendly solution to vehicle emissions. With certain experts refusing to climb on the ‘hybrid bandwagon’, it appears that while hybrids are green, they are a ‘shade less green’ than their manufacturers would like consumers to believe. (See http://www.topgear.com/uk/jeremy-clarkson/clarkson-hybrids-2009-01-12 )

Global recalls of hybrids

While analyzing the suitability of Hybrids to Sri Lanka it is important to take into account recalls of hybrids and the reasons for those recalls.

Toyota Motor announced early February that is recalling all of the 1.9 million newest-generation Prius vehicles it has sold worldwide because of a programming error that could cause their gas-electric hybrid systems to shut down.

The best-known hybrid vehicle in the world, the Toyota Prius, is being recalled globally by its maker due to a software issue with its engine control unit (ECU). The current ECU settings in the third-generation Prius have been reported to cause some transistors to overheat, which in turn sends the car into a failsafe mode and, under certain circumstances, could cause the hybrid system to shut down while driving.

(Toyota recalls millions of Prius hybrids to fix software glitch http://www.theverge.com/2014/2/12/5403908/toyota-recalls-millions-of-prius-hybrids-to-fix-a-software-glitch)

Last year, Toyota announced a pair of separate but voluntary North America recalls covering approximately 235,000 vehicles built between 2006 and 2011. The larger of the two recalls targets Toyota's hybridized crossovers, the Lexus RX400h and Toyota Highlander Hybrid. 133,000 units, including 2006-2010 Highlander and 2006-2008 RX crossovers are covered in the campaign. The other recall affects 102,000 IS350 sedans, IS350C convertibles and GS350 sedans built between 2006 and 2011. (See http://www.autoblog.com/2013/09/04/toyota-lexus-hybrid-crossover-sedan-recalls/)

“… the faults in the parallel circuits of the transistors can cause heat damage in the inverter assembly, triggering an abundance of warning lamps and sending the vehicle into limp mode. The Lexus sedans are being recalled due to lose bolts on the variable valve timing controller. Detected by unusual underhood sounds on startup, the issue can cause the engine to stop while driving. The inverter issue is also triggering similar recalls in Japan and Europe…”

Objective view

While the factors taken into account above would not induce customers to switch from hybrids to conventional vehicles (as they have made huge investments) they clearly establish that propaganda of manufacturers of hybrids should not be accepted as the biblical truth. These factors also indicate that governments around the world – including the Sri Lankan government – should re-think tax concessions granted to hybrid vehicles as they appear to be largely based on popular belief and popularity of ‘green’ concepts rather than on verifiable data.

Indeed tax concessions should be given to hybrids if they are found to perform impressively in terms of higher mileage and less emissions in real-life conditions. Sadly, it does not appear than any comprehensive studies of this nature have been carried out in Sri Lanka. If hybrids indeed perform in the manner they are expected to, considering the ever-increasing fuel prices faced by Sri Lankan consumers, tax concessions should not be required to boost sales of hybrids. As such, since demand for hybrids appears to be driven purely by tax concession, one can only ask; is this really the case?