Unlike full hybrid vehicles that have more powerful electric motors and larger batteries, mild hybrid vehicles, also referred to as micro hybrids, employ a battery and an electric motor to help power the vehicle. They also have the option of turning off the engine when the car comes to a halt (for instance, at a stop sign or in stop-and-go traffic), which further increases fuel efficiency. Mild hybrid systems are unable to operate the car entirely on electricity. Although these cars are often less expensive than complete hybrids, they don't offer as much in the way of fuel efficiency. However, the market for mild hybrid vehicles is growing due to various factors. For instance, these vehicles can travel longer distances on electric power alone while still providing the backup of a petrol or diesel engine in the event of an emergency, such as low battery power and no nearby recharge stations. Due to all such factors, according to OMR Research, the market is expected to witness significant growth in the forecast period (2023–2029) with a CAGR of 8.9%.
Segments of the Market
The global market for mild hybrid vehicles is divided into two categories: capacity and vehicle type. On the basis of capacity, the market is sub-segmented into less than 48 V and 48 V and above. On the basis of vehicle type, the market is sub-segmented into commercial vehicles and passenger vehicles.
Recent Developments
The key market players, such as Ford Motor Company, Hyundai Motor Company, Nissan Motor Company, Ltd., Suzuki Motor Corporation, Toyota Motor Corporation, Honda Motor Company, Ltd., Kia Motors Corporation, Volvo Group, Bayerische Motoren Werke (BMW) AG, Chevrolet, Volkswagen Group, Jaguar Land Rover Ltd., and others, are contributing to the market’s growth with their research and development activities, collaborations, investments, and new vehicle launches. Some of the recent mild hybrid vehicle market developments include:
• In November 2022, BMW India, a manufacturer of premium and luxury vehicles, announced plans to launch two new luxury SUVs, the X7 facelift and the new XM, as well as an updated M340i xDrive sedan on December 10 in India. The X7 will be available in xDrive 40i and xDrive 30d looks, with the former featuring a 380hp inline six-cylinder petrol engine and the latter featuring a 352hp inline six-cylinder diesel engine. Both engines are powered by 48-volt mild hybrid technology and come mated to an 8-speed automatic transmission with all-wheel drive as standard.
• In November 2022, SAIC Motors launched the Maxus Territory SUV in China. The Territory has a 2-liter ICE with 218 hp, part-time 4WD, and a starting price of about 36,300 USD. The Maxus Territory is powered by a petrol turbodiesel engine. It is paired with the mild hybrid (48-volt) system. It has a power output of 218 hp (160 kW) and a torque of up to 500 Nm.
• Volvo Group unveiled its petrol and mild hybrid car range in India in September 2022, with a launch date of 2023. The cars include the SUV XC90, the mid-size SUV XC60, and the luxury sedan S90. Moreover, Volvo launched the compact SUV XC40 mild hybrid car in India at a starting price of INR 43.20 lakh. The company also announced plans to launch a new electric car each year starting in 2023.
• In 2022, Toyota Kirloskar Motor (TKM) launched the Urban Cruiser Hyryder in four variants. The vehicles are powered by a 1.5-liter four-cylinder Atkinson Cycle TNGA strong hybrid petrol engine and a 1.5-liter K15C DualJet mild hybrid petrol engine. The Neo Drive (mild hybrid) variants were launched in E, S, V, and G grades.
Conclusion
The market for mild hybrid vehicles is growing at a significant rate due to its economical price compared to other full hybrid vehicles, and these vehicles produce less tailpipe emissions compared to conventional vehicles that solely run on petrol or diesel. Moreover, increasing fuel prices around the world are set to boost the adoption of mild hybrid vehicles among the population. However, the market may face some restraints due to the increasing availability of full hybrid vehicles at lower costs, and as these vehicles run solely on electricity, many government and private organizations are encouraging people to opt for full hybrid vehicles.
The market is still witnessing growth due to the low number of charging points when it comes to full hybrids, and people who prefer traditional vehicles with petrol or diesel can start with mild hybrids to settle in with electric-powered technology. In addition, by 2040, there will be over one billion additional cars using internal combustion engines (ICE), according to the Bloomberg Electric Vehicle Outlook 2021. This is partly because e-mobility is being adopted considerably more slowly in regions such as Africa, Latin America, and India.