RECENT TRENDS IN
AUTOMOBILES
ABSTRACT
This paper
presents the overview of recent developments in automobiles. The basic
objective of this market research report “INDIAN AUTOMOBILE INDUSTRY-RECENT
TRENDS” is to estimate the demand for automobiles from 2005-2012. The increased
demand for Indian automobiles has resulted in a large number of multi-national
auto companies, especially from Japan, USA and Europe, entering the Indian
market and working in collaboration with the Indian firms. The report also
examines the region wise demand and growth trends for the selected vehicles,
and how they influence Indian’s GDP (Global Development Percentage) growth. Current
technological trends in the automobile industry reflect many diverse
disciplines. The trends which can examine the global automotive market are
Global Market Dynamics, Establishment of Global Alliances, and Industry
Consolidation. Alternate energy sources for cars, such as natural gas,
electricity, ethanol and vegetable oil, began to view for consumer demand in
the early 21st century. Solar powered cars and hydrogen powered fuel
cell cars remained in development stages. Hybrid automobiles combine an
electric motor with batteries that are recharged by a small gas or
diesel-powered engine. Ethanol is used as alternate fuel in the early 21st
century, it may increase in future. At the start of 21st century,
the trends of global trade and manufacturing flexibility continued. Computerization
continued to be a major part of auto design and manufacture, as did the search
for alternate fuels and more efficient automobile designs.
WHAT ARE
THE BENEFITS OF USING ETHANOL?
Ethanol is a relatively low-cost alternative fuel, but what
are the benefits of using ethanol or an ethanol blend in place of unblended
gasoline?
Answer: Using ethanol as an alternative to
gasoline provides several key benefits.
ETHANOL IS GOOD FOR THE ENVIRONMENT
Overall,
ethanol is considered to be better for the environment than gasoline.
Ethanol-fueled vehicles produce lower carbon monoxide and carbon dioxide
emissions, and the same or lower levels of hydrocarbon and oxides of nitrogen
emissions.
E85, a blend of 85 percent ethanol and 15 percent gasoline,
also has fewer volatile components than gasoline, which means fewer emissions
from evaporation.
Adding ethanol to gasoline in lower percentages, such as 10
percent ethanol and 90 percent gasoline (E10), reduces carbon monoxide
emissions from the gasoline and improves fuel octane.
ETHANOL IS WIDELY
AVAILABLE AND EASY TO USE
Flexible fuel vehicles that can use E85 are widely available
and come in many different styles from most major auto manufacturers. E85 is
also widely available at a growing number of stations throughout the United
States. Flexible fuel vehicles have the advantage of being able to use E85,
gasoline, or a combination of the two, giving drivers the flexibility to choose
the fuel that is most readily available and best suited to their needs.
ETHANOL IS GOOD
FOR THE ECONOMY
Ethanol production supports farmers
and creates domestic jobs. And because ethanol is produced domestically, from
domestically grown crops, it reduces U.S. dependence on foreign oil and
increases the nation’s energy independence.
BLENDING ETHANOL WITH GASOLINE
E85, a blend of 85 percent ethanol and 15 percent gasoline,
is used in flexible fuel vehicles, which are offered by most major auto
manufacturers. Blends with more ethanol, such as E95, are also premium
alternative fuels.
Blends with lower concentrations of ethanol,
such as E10 (10 percent ethanol and 90 percent gasoline), are sometimes used to
increase octane and improve emissions quality, but are not considered
alternative fuels.
TYPES OF
ETHANOL
v
E10 and other Low-Level Ethanol Blends
v E15-E20:
Intermediate Ethanol Blends
v E85 Ethanol:
Flex Fuel
E10 AND OTHER LOW-LEVEL ETHANOL
BLENDS
Low-level ethanol blends are sold in every state. Gasoline
now contains up to 10% ethanol (E10) to boost octane or meet air quality
requirements.The Clean Air Act Amendment of 1990 (and subsequent laws) mandated
the sale of oxygenated fuels in areas with unhealthy levels of carbon monoxide.
This kicked off the modern U.S. ethanol industry growth.
Problems with groundwater contamination from the use of
methyl tertiary butyl ether (MTBE)—the only other available oxygenate and
principal octane booster—accelerated the use of ethanol in low-level
blends.Auto manufacturers approve the
use of low-level blends because they work well in gasoline engines and create
no noticeable difference in vehicle performance.
E15-E20:
INTERMEDIATE ETHANOL BLENDS
Intermediate ethanol blends have an
ethanol content greater than 10% and less than 85%. Fueling large numbers of
vehicles with intermediate blends could provide similar benefits as fueling
with low-level blends while increasing gasoline displacement and utilizing the
nation's rapidly increasing ethanol production.
However, intermediate ethanol blends
cannot yet be used legally in standard (non-flexible fuel) vehicles.
Intermediate blends can be used today in flexible fuel vehicles but do not qualify as alternative fuels under the Energy Policy Act of 1992 (EPAct).
Some fueling stations currently use
"blender pumps"—fuel dispensers that can create a variety of ethanol
blends by mixing E10 with E85. The
resulting intermediate blends can be used legally in flexible fuel vehicles but
not in standard vehicles.
E85 ETHANOL Drivers
jumping on the latest gas-saving bandwagon may be in for a shock when they see
fuel-economy estimates for the newest darlings of Detroit: E85 ethanol
flex-fuel vehicles.
According to
Environmental Protection Agency (EPA) estimation
·
Run
a new V6 Chevrolet Impala on good-old gasoline( 21 miles per gallon in the
city, 31 on the highway).
·
Burn
E85 - a blend of 85 percent of the alcohol-based fuel ethanol (15 to 16 mpg city, 23 highway)
Run a two
wheel-drive V8 Ford F150 on regular unleaded gas, and the EPA says it'll get 14
mpg city, 19 mpg highway. Run it on E85 ethanol, and it gets 11 mpg city, 14
mpg highway. In other words, fill up on environmentally friendly E85 ethanol,
and you'll get fewer miles per gallon than you would on gasoline.
E85 ethanol
boosters are General Motors and Ford, which have mounted massive new E85
ethanol support programs. Spurred by public and private efforts to pump up E85
ethanol demand, ethanol producers themselves are pouring billions of dollars
into building new refineries.
As with any
alternative-fuel idea, however, the E85 ethanol story is one of tradeoffs. It
pits, for example, E85 ethanol's ability to lower air pollution because it
burns cleaner than gasoline against the potential environmental costs involved
in ethanol production.
We've
highlighted some tradeoffs in E85 ethanol fuel economy, but are there
compromises in convenience and vehicle performance? These and other issues are
thoroughly explored in the following sections:
About
one-third of all gasoline sold in the United States contains some ethanol,
typically in a ratio of 90 percent gasoline and 10 percent ethanol. E85 gets
its name from the way it inverts that formula, at 85 percent ethanol and 15
percent conventional gasoline.
We'll explain
how ethanol is produced and why it's mixed with gasoline, and explore some of
the controversy surrounding its place in environmental and public policy
debates. Only a fraction of the cars and trucks on the road are "flex
fuel" vehicles: those that can run on conventional gasoline or E85 ethanol
fuel.
You'll learn
why that number is growing, and how you can determine whether your next new car
or truck -- or maybe the one you already own -- is an E85 ethanol flex-fuel
vehicle.
EXPLANATION
Ethanol is an
alcohol-based fuel made by fermenting and distilling starch crops,
corn mostly. Only a relative handful of renewable energy companies produce it,
but virtually all the ethanol they generate comes from renewable crops grown on
American farms. One acre of corn can be processed into about 330 gallons of
combustible ethanol.
Proponents
argue that mixing 85 parts ethanol with 15 parts gasoline to
create E85 ethanol fuel helps stretch the earth's supply of oil,
which is finite. Supporters, such as the Renewable Fuels Association, say E85
ethanol fuel expands the market for U.S. crops and creates jobs in agriculture
and refining.
By reducing
oil imports, backers argue, ethanol eases the nation's trade imbalance and cuts
down on the tax dollars and military resources needed to keep foreign oil
flowing.
As for
environmental benefits, the U.S. Department of Energy says vehicles fueled with
E85 ethanol have lower carbon monoxide and carbon dioxide emissions than
conventional gasoline or diesel vehicles. Ethanol is water soluble,
non-toxic, and biodegradable. E85 ethanol contains far fewer potential
contaminants than found in gasoline.
But for
nearly every benefit ascribed to E85 ethanol, a detractor is ready with a
counterpoint. For example, ethanol production requires burning non-renewable
fossil fuels to plant, grow, and harvest the crops and operate refineries.
A Cornell University agricultural expert says
that, considering the energy costs of growing corn and converting it to
ethanol, it takes far more energy to produce ethanol than it yields
This
cycle illustrates how plants, often corn, are turned into ethanol.
|
|
Of the
roughly 250 million cars, trucks, SUVs, and minivans on America's roads, only
about six million are capable of burning E85 ethanol. About half of these E85
ethanol flex-fuel vehicles are in commercial or government fleets.
The majority
of private E85 vehicles come from Ford and General Motors, but certain
Chrysler, Dodge, Jeep, Mercedes-Benz and Nissan models also are E85
ethanol-compatible. These vehicles have special components installed on the
factory assembly line that monitor and compensate for the ethanol/gasoline mix.
Their fuel systems are also fortified against the corrosive effects of E85
ethanol.
E85
THROUGHOUT THE YEARS
Henry Ford built an ethanol-burning Model T
before World War I, and over the years, thousands of fleet vehicles were
modified to run on ethanol-based blends. U.S. automakers began making E85
ethanol-compatible components standard on certain models in 1998.
Over the past
year, Ford, GM, and DaimlerChrysler have seized the E85 ethanol mantle as a
fuel-saving technology and a way to support the environment and promote
domestic agriculture. These manufacturers say they plan to put a combined total
of 2 million additional E85 ethanol flex-fuel vehicles on the road each year
starting in 2007.
For 2007, 29
different models for sale in the U.S. are E85 ethanol flex-fuel capable. That's
up from 20 for the 2006 model year. For 2007, GM has offered 17 E85 ethanol
flex-fuel models totaling about 400,000 vehicles, compared to nine models in
2006. Ford expects to sell 250,000 E85 ethanol flex-fuel models in 2006.
Still, you'll
need to look closely to identify one of these E85 ethanol flex-fuel vehicles.
Some early E85 ethanol flex-fuel Fords carry a small road-and-leaf logo and
decal reading "FFV," for Flexible Fuel Vehicle. GM identifies its E85
ethanol flex-fuel vehicles with yellow gas caps and "Flex Fuel E85"
badges.
The best
ways to determine whether you have an E85 ethanol flex fuel vehicle is to
consult your owner's manual or check for an identifying sticker inside the fuel
door. A list of E85 ethanol flex fuel-compatible vehicles is also available
from several Web sites, including fueleconomy.gov and e85fuel.com
E85 ethanol
flex-fuel vehicles have some special technology in them. We'll explain how that
may affect their purchase and maintenance costs. The automakers say running a
flex-fuel vehicle on E85 has no effect on performance. We'll share our
real-world experiences to find out if that's true. And although the number of
gas stations selling E85 ethanol fuel is growing, we'll explain why there are still
so few of them, and why they are clustered in a few geographic areas. Finally,
how does using E85 ethanol fuel affect your pocketbook? And should that be the
determining factor in whether you decide to use it?
EXPLANATION
As the term
"flexible fuel" implies, any E85 ethanol flex-fuel vehicle can run on
100 percent E85, 100 percent pump gasoline of any octane, or any
combination of E85 ethanol and gasoline. The car's on-board diagnostic systems
compensate for any of these blends to keep it running according to
manufacturer's specifications.
Automakers
spend an estimated $150 to make a vehicle E85-ethanol capable, but none charges
customers more for an E85 ethanol flex-fuel vehicle compared to a gasoline-only
counterpart. Neither do they vary horsepower
ratings for E85 ethanol flex-fuel engines. E85 ethanol has an octane rating of
100-105, versus 85-95 for gasoline, but manufacturers do not tune E85
ethanol-capable engines for higher performance than their gas-only
counterparts. This allows them to run efficiently on conventional gasoline.
On the road,
real-world performance is indistinguishable. Consumer Guide's automotive editor’s
road tested an E85 ethanol flex-fuel Impala on both 87 octane gasoline and E85
ethanol, and could not detect a difference in engine performance, smoothness, or sound.
Some E85
ethanol proponents say the blend keeps fuel systems cleaner than gasoline, for
potentially lower long-term maintenance costs. Ford and GM have no special
maintenance requirements for their E85 ethanol flex-fuel vehicles, but other
manufacturers may require use of specific engine lubricants. Check your owner's
manual or consult your dealer. Motorists fueling up with E85 ethanol should
share that information with their dealer service department or parts supplier
when ordering replacement parts.
WHERE TO
FIND E85
Efforts by automakers and the
government to increase the number of gas stations that carry E85 ethanol have
raised their ranks by some 100 stations over the past year. Nonetheless, only
about 800 of the nation's 180,000 gas stations carry E85 ethanol fuel. Another
200 or so E85 ethanol refueling stations are fleet or government sites not open
to the public. Most locations are in Midwest Corn Belt states, where E85
ethanol production and sales have for years benefited from government supports.
As of
November 2006, according to the U.S. Department of Energy, Minnesota led the
nation with 300 E85 ethanol fuel sites, followed by Illinois with 132, Missouri
with 63, and Iowa with 56, and South Dakota with 50. Most states had fewer than
a dozen. Alaska, Delaware, Hawaii, Maine, New Hampshire, New Jersey, Rhode
Island, and Vermont had none. Go to E85refueling.com for a list of stations
that carry E85.
Once you pull
up to an E85 ethanol pump, you aren't likely to find the price per gallon of
E85 significantly different from that of 87-octane regular grade gas. While
some Midwest service stations price E85 ethanol as much as 30 cents per gallon
below regular-grade gas, the EPA in November 2006 listed the average price for
a gallon of E85 ethanol nationally at $2.41, compared to $2.23 per gallon for
regular-grade gasoline.
Most E85 pumps are located in the Midwest, but they are popping up in almost all 50 states. |
Supply,
demand, and distribution costs figure among reasons E85 ethanol can be more
expensive than conventional gasoline at the pump. Government and auto industry
efforts to promote the fuel have increased demand for E85 ethanol, helping
create a supply crunch at refineries. In addition, wholesale ethanol prices are
increasing as oil companies stock up on the alcohol as a substitute for
petroleum additives suspected of causing cancer. And E85 ethanol costs more to
distribute than gas. The blend can't be pumped through petroleum pipelines
because of the corrosive impact of its alcohol content,
For example, in
the final analysis, of course, E85 producers and retailers are free to charge
what they can to satisfy demand and make a profit. So you've found a station
with E85 ethanol, decided the price was right, and you've filled the tank of
your flex-fuel car or truck. How far will it take you?
Not as far as
a tank of gasoline would. As the examples of the Impala and F 150 show, your
fuel economy using E85 ethanol is lower than with gasoline. These are not
isolated examples. Overall, depending on the vehicle, fuel economy with E85
ethanol is some 20 to 30 percent less than with gasoline. Consumer Guide's test
Impala, for example, averaged 24.2 mpg on gasoline, but just 16.9 mpg in
similar city/highway driving using E85 ethanol.
Looked at
another way, a tank of E85 ethanol will take you only about 80 percent as far
as you could drive on a tank of gasoline. On E85 ethanol, you'll stop more to
refuel, have to plan ahead to make sure the station carries E85 ethanol, and
perhaps pay more per gallon once you get there.
The
difference in miles per gallon between gasoline and E85 ethanol has to do with
E85 ethanol's lower energy content per unit of volume. Measured in British
Thermal Units (BTUs), a gallon of E85 ethanol has only 72 percent of the energy
in a gallon of gasoline. Go to fueleconomy.gov to compare EPA fuel-economy
estimates for the same flex-fuel vehicle running on E85 ethanol and on
gasoline.
So we've seen
that choosing an E85 ethanol flex fuel vehicle and running it on E85 ethanol
may not be to your personal advantage in terms of convenience and fuel cost.
But it won't affect vehicle performance. And once you consider arguments on
both sides of this the complex issue, you may decide that buying a flex-fuel
vehicle and running it on E85 ethanol is a personal gesture of support for
American agriculture, alternative fuels, and energy independence.
How Does
Ethanol Performance Compare to Gasoline?
Ethanol is widely available and reasonably inexpensive, but
what kind of performance can drivers expect from a car running on ethanol or an
ethanol/gasoline blend?
Answer: One gallon
of pure ethanol contains about 66 percent as much energy as a gallon of
gasoline. A gallon of E85, a common blend of 85 percent ethanol and 15 percent
gasoline, contains about 71 percent as much energy as a gallon of unblended
gasoline.
Drivers who use E85 can expect about
15 percent less fuel economy than they would get with gasoline. Other
performance factors such as power, acceleration, and cruising speed are
essentially equivalent in vehicles burning E85 and conventional fuels.
HOW MUCH DOES IT COST TO USE ETHANOL?
Ethanol is a widely available
alternative fuel that can be used in many vehicles that are already on the
road, but is it cost-effective to use ethanol or an ethanol/gasoline blend in
place of unblended gasoline?
Answer: A gallon of E85, a
blend of 85 percent ethanol and 15 percent gasoline, usually costs about the
same as a gallon of regular gasoline, although prices may vary somewhat
depending on location.
COMPARABLE COST PER GALLON, BUT LESS FUEL ECONOMY
A gallon of ethanol contains less
energy than a gallon of gasoline, however, so you may get lower mileage with
ethanol and be required to fill your tank more often, which may could to your
fuel costs.
For more current information about
the cost of ethanol and other alternative fuels, download the most recent Alternative Fuel
Price Report from the U.S. Department of Energy.
VEHICLES THAT USE ETHANOL COST NO MORE THAN OTHERS
Vehicles that can use E85 are widely available in many models—sedans, minivans, SUVs, pickups and light trucks and usually cost about the same as vehicles that run exclusively on gasoline. The U.S. Department of Energy provides an online Flexible Fuel Vehicle Cost Calculator that makes it easy to determine the costs and benefits of using E85 in a flexible fuel vehicle where you live.
Vehicles that can use E85 are widely available in many models—sedans, minivans, SUVs, pickups and light trucks and usually cost about the same as vehicles that run exclusively on gasoline. The U.S. Department of Energy provides an online Flexible Fuel Vehicle Cost Calculator that makes it easy to determine the costs and benefits of using E85 in a flexible fuel vehicle where you live.
MERITS
v A
University of California study, by contrast, insists modern farm efficiency
means ethanol generates more energy than it requires producing.
v Corn-based gasohol (a
combination of unleaded gasoline and ethanol made from corn) reduces fossil
energy use by 50 to 60 percent and pollution by 35 to 46 percent.
v More than 11 percent of all automotive fuels
sold in the United States were ethanol-blended in the early 21st century. That
percentage may increase in the future.
DEMERITS
v Creating
plant-based biofuels requires too much farmland to be practical or sustainable—land
that would be better used to grow food.
v Producing
ethanol and other biofuels takes more energy than the fuel can generate.
CONCLUSION
This paper
concludes that the use of ethanol gives relatively a good fuel economy.
Commercially speaking, tha cost of the ethanol is not so high as compared with
the conventional gasoline. Moreover in the fast growing world, pollution is a
main constraint. The use of ethanol fixs this constrain. Hence the usage of
ethanol can be recommended in a wide range of automobiles.
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