Incentives and Federal Grants to Propel the Adoption of Hybrid Commercial Vehicles in North America and Europe, Finds Frost & Sullivan

LONDON, August 2, 2010 - The hybrid commercial vehicles market in North America and Europe is
fuelled by the benefits hybrids offer over conventional vehicles. Better fuel
efficiency, lower emissions and fewer maintenance costs are all highly
desirable features, especially in sprawling mega cities and increasingly
congested urban clusters. In the short-term, incentives and federal grants
are expected to propel the adoption of hybrids.

    (Logo: photos.prnewswire.com/prnh/20081117/FSLOGO)
    (Logo: www.newscom.com/cgi-bin/prnh/20081117/FSLOGO)

New analysis from Frost & Sullivan (www.automotive.frost.com),
Strategic Analysis of North American and European Hybrid Truck, Bus and Van
Market, finds that the hybrid truck, bus and van market is expected to grow
from 4.1 thousand units in 2009 to 222 thousand units by 2016. The products
covered in this research service are: light commercial vehicles, medium
commercial vehicles, heavy commercial vehicles and buses.

"Amongst alternative powertrain technologies and fuels, hybrid commercial
vehicles exert the least pressure on the existing energy and transportation
infrastructure and require only minimal modification to the current fuelling
infrastructure," says Frost & Sullivan Global Programme Manager, Sandeep Kar.
"This aspect of hybrid commercial vehicles is acting as one of the strongest
market drivers in North America and Europe, attracting governments,
commercial vehicle manufacturers, and potential consumers alike towards
supporting and accepting hybrid commercial vehicles."

In the commercial vehicle industry, the return-on-investment (ROI)
potential is a key determinant for adoption of new technologies. Fuel price
volatility, government incentives and low lifecycle costs associated with
hybrid trucks are all in favour of hybrid commercial vehicles.

However, hybrid trucks feature energy storage systems, control and power
electronics and rotating machines, which are expensive technologies creating
considerable cost barriers to potential adopters. Furthermore, storage
systems such as batteries must be replaced every four to five years based on
the vocational application.

"Currently, the high upfront cost associated with hybrids is countered
with federal grants, incentives, and tax rebates," explains Kar. "Although
such incentives offer relief in the short term, for hybrids to be
commercially viable in the long term, the upfront cost difference should
reduce considerably."

Private fleets in North America and Europe have emerged as early adopters
of hybrid commercial vehicles. However, robust volume growth can be attained
through the penetration of for-hire fleets.

"Standardization of key enabling technologies will not only reduce R&D
expenses and complexity but also create a foundation for launching aggressive
price reduction strategies that are necessary for stoking market growth,"
concludes Kar.

If you are interested in more information on this study, please e-mail
Monika Kwiecinska, Corporate Communications, at monika.kwiecinska@frost.com,
with your full name, company name, title, telephone number, company e-mail
address, company website, city, state and country.

Strategic Analysis of North American and European Hybrid Truck, Bus and
Van Market is part of the Automotive & Transportation Growth Partnership
Services programme, which also includes research in the following markets:
Strategic Analysis of North American and European Electric Truck and Bus and
Van Market and Comparative Analysis of Global Emission and Safety Regulations
for Commercial Vehicles. All research services included in subscriptions
provide detailed market opportunities and industry trends that have been
evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to
accelerate growth and achieve best-in-class positions in growth, innovation
and leadership. The company's Growth Partnership Service provides the CEO and
the CEO's Growth Team with disciplined research and best-practice models to
drive the generation, evaluation, and implementation of powerful growth
strategies. Frost & Sullivan leverages over 45 years of experience in
partnering with Global 1000 companies, emerging businesses and the investment
community from 40 offices on six continents. To join our Growth Partnership,
please visit www.frost.com.

    Strategic Analysis of North American and European Hybrid Truck, Bus
                             and Van Market
                                  M4F2

    Contact:
    Monika Kwiecinska
    Corporate Communications - Europe
    P: +48-22-390-4127
    F: +48-22-390-4160
    E: monika.kwiecinska@frost.com

www.frost.com

Monika Kwiecinska of Frost & Sullivan Corporate Communications - Europe, +48-22-390-4127, fax, +48-22-390-4160, monika.kwiecinska at frost.com