Thursday, 25 October 2012

Hybrid car tax exemption to be extended to end of 2011

Hybrid car tax exemption to be extended to end of 2011

        Based on, human can’t live without the cars due to its make us convenient to move on one place to the other place, especially developing country and developed country citizen. With the development of science and technology,the car is already become so many pattern and comfortable from old generation and so many brand of car have come out ,such like Audi, Volkswagen, Toyota ,Honda  and many more .In addition, every car have different prices due to depend what thing the owner expected ,for example full pack of accessories and normal pack of accessories are different prices ,different branded is also with the different prices. Moreover, there have few famous producing countries of car also, such as Germany, Japan, Korea, United States and others. This few more countries get a lot of benefit from export the car. The type of car have solar energy car, hybrid car, petrol car and more will be coming up. How many people got think that why the demanded of hybrid car was so hot nowadays. There have few many reasons, such as people want to save the world by soon because of ozone of the earth have already become more thinning. If the ozone more thinning, it will effected life creature respiratory and the other system will get worst also but hybrid car speed pick up is really slow than normal car.

Firstly, I will explain about the supply curve .From the law of supply, it is talked about other things remaining the same; the higher the price of a good, the greater is the quantity supplied and the lower the price of a good, the smaller is the supplied. That means hybrid car prices is higher than the quantity supplied will be increased because the supply can earned more benefit, that why the S1 switch to S2.  In July 2008, the average national price for a gallon of regular gas hit from $4- $4.11 but the price of gas is still lower than the price of gasoline. When the price of hybrid car decease, then the equilibrium price will be changed also .If the price is low, the supplier will be decreased than might be shortage. Nowadays, company have already started to produce more the hybrid car for the consumer to choose it, such as Toyota, Honda and Ford. As a result like this, it is also depend the country of government offer duty.

Next, I will explain the demand curve of hybrid car .The law of demand states that, if all other factors remain equal, the higher the price of a good, the less people will demand that good. In other words, the higher the price, the lower the quantity demanded. The amount of a good that buyers purchase at a higher price is less because as the price of a good goes up, so does the opportunity cost of buying that good. As a result, people will naturally avoid buying a product that will force them to forgo the consumption of something else they value more. The chart below shows that the curve is a downward slope. . From 2009 to 2011, the quantity demanded of Honda hybrid car have increased from 298 to 1000 units of car now. Even the normal car is more powerful than hybrid car, but the hybrid car still increasing. This is because people notice want save the only earth. End of 2011, the report today’s budget showed the duties for hybrid cars are even lower now. Previously the government offered 100% import duty exemption and 50% excise duty exemption, now its 100% exemption for both import duty and excise duty. This should mean the price of the Toyota Pries and the Honda Civic Hybrid should be even lower now, such the Honda civic hybrid can possible saving of excise duty .This curve in above showed that when the price of hybrid car decrease then the quantity of demanded of hybrid car have increased significantly. That why few company of hybrid car get a good result and benefit on the duty changed. At first the quantity demanded will be increase because the price is cheap, but the supplier still can get the benefit. However, this will not to be longer due to other supplier will come to be the competitor with the earliest supplier so the supply curve will be increase from S0 to S1. The price of hybrid car is really cheap for buyer and its use gas or electric. The price of gas is also cheaper than gasoline. In other hands, the maintain fee of hybrid car is higher than normal car. In addition, the accessories of hybrid car are also harder to find than normal car. This moment, the quantity demanded of hybrid car will be decrease from D1 to D0.

In long run, Hybrid cars lack in mileage which is a great setback for all the hybrid car owners. Currently a hybrid car gets up to a mileage of 31 mpg on city and 45 mpg on highway. The hybrid car designs of the future are including sports car models that have been all-time favorites with the world in the past and are now being revived with the mind. With a mindset of grasping and expanding the propulsion features that are somewhat limited in today's hybrid car designs, there are retro styling efforts that are focusing on providing hybrid cars with optional V8 engine capacities. There are considerations in place to use solar cells in the framework of hybrid automobiles. The future hybrid car will need to focus more on greenhouse gases that negatively affect the environment as well as a hybrid car that will be even more fuel efficient. Actually the hybrid car is good for future because it can fulfill the green environment. So must settle the problem of mileage, if not the demand will be going down.In short, the hybrid car have a good future value because its make less pollution to us .The price will be decreased due to the government will give some offer for citizen. That is the reason of the quantity demanded of hybrid car will be increased and the quantity supplied will be decreased .This is because no much benefit can get from the hybrid car .In my opinion, if the outlook of hybrid car must be changed and the mileage may be changed also, that make strong the hybrid car in market value .That means the supplier will be increasing and demand will be increase. Therefore, hybrid car have a very good market value on the future, because the gap of accessories and the maintain fee will be decrease in future. This is also because the hybrid car is also become the normal for everyone. Moreover, the hybrid car is also fulfilling the rules of green environment so every people will be more willing to buy it.

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