https://www.maximizemarketresearch.com/market-report/global-hybrid-vehicle-market/16940/ As public awareness of pollution grows, regulatory organizations are enacting more strict emission regulations. As emission regulations tighten, automakers are being driven to build hybrid and electric vehicles. Automobiles that run on gasoline or diesel emit more greenhouse gases than hybrid vehicles. Governments in the United States and Europe are working on lowering emission regulations and boosting automotive fuel economy to minimize greenhouse gas emissions. The US Department of Transportation, for example, created the Corporate Average Fuel Economy (CAFE) requirements for automobiles. The growing demand for battery electric cars (BEVs) and fuel cell electric vehicles will be one of the major challenges for hybrid vehicle proliferation (FCEVs). There are many different models and types of BEVs in the passenger car category, including hatchbacks, sedans, and SUVs. BYD (China), Tesla (USA), and Volkswagen (Germany) are among the automakers that are prioritizing BEV development. FCEVs features a long-range, fast recharging, silent operating, and no greenhouse gas or air pollution emissions. As a result of these benefits, demand for FCEVs is increasing. Also, governments are taking steps to promote and encourage the use of fuel cells in transportation, which could increase the demand for fuel cells in the automotive and transportation sectors. Because of the government initiatives and support, hybrid vehicles provide huge prospects for expansion in emerging country markets (e.g., incentives in sales and manufacturing, tax rebates, and increased focus on deploying hybrid commercial vehicles). Incentives of around USD 446 are available from the Indian government for the purchase of hybrid and electric automobiles in India. By lowering the tax rate on hybrid vehicles such as plug-in hybrids, hybrid electric vehicles, and CNG hybrids, the Brazilian government is encouraging their purchase. Tata Motors has been granted a contract by the Mumbai Metropolitan Region Development Authority (MMRDA) in India to provide 25 Tata Starbus Diesel Series Hybrid Electric Buses. The high cost of hybrid vehicles is a hurdle for the market. The battery is the most important component of a hybrid vehicle, such as a plug-in hybrid vehicle. The battery raises the vehicle's cost, making it more expensive than diesel and gasoline-powered automobiles. The price difference is due to the cost of parts like the battery and the regenerative braking. The cost of batteries, on the other hand, has dropped significantly in recent years. In addition, battery producers are taking steps and doing R&D to reduce the cost of batteries.