The Mercedes S 400 was launched as a hybrid version of the S-class luxury sedan in late June. The car will be initially available only in Europe and will launch in North America towards September 2009. The new Mercedes Benz BlueHYBRID S 400 comes with a 275 hp, 3.5 liter v6 engine, 7 speed automatic transmission and a high voltage lithium ion battery pack to drive the 15kw electric motor. The car also has a regular automobile battery for the other electronics such as CD player, seat power, etc. Though the car is a full size sedan, it gets around 30 mpg. The car goes from 0 to 60 mph in 7.2 seconds. The hybrid premium is expected to be around $14,000 to $17,000 over the standard version. When launched in the US, the car is expected to be priced around $88,000.

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With over 14 car manufacturers working actively on putting plug-in electric cars on the road soon, many experts have concerns that there will be power shortages during peak hours with all the plug-in hybrids getting on the grid to charge their batteries. This seems to be a myth according to many experts who say that the existing capacity on the US grid could charge 173 million plug-in hybrid cars in the US. The caveat being that the car owners must be responsible enough to charge the car during the night hours when businesses will not be impacted. Another idea is to meter the charging of electric vehicles to ensure that responsible owners who charge during off peak hours get a rebate while those who have urgent need to re-charge during peak hours will pay more.

Other concerns with plug-in hybrids are in regards to what can be done with the large lithium batteries once they are spent. How do you dispose off the large number of batteries? Can they be recycled?

State governments such as California are also pushing hydrogen technology. It seems that there is a lot more research funding available for hydrogen powered vehicles than there is to improve the battery technology for plug-in electric or hybrid cars. Hydrogen cars will bring their own challenges in terms of the energy required to create hydrogen in the cylinders, etc.

Later this year, Chrysler’s fully electric GEM Peapod is expected to hit the market priced at around $12,000. With a top speed of just 25 mph, it’s really a “neighborhood car” which in other words means a souped up golf cart. One of the cool features of the car is it’s integration with the iPhone. The driver can use the iPhone as a key and even a green power usage meter. The car also integrates with the iPhone navigation system. The vehicle battery can be charged through a 110V outlet.

California based Miles Electric had plans to launch a full electric 4-door sedan, XS-500, by end of 2009 which now is rumored to be delayed. The car based on an existing gasoline powered Chinese sedan is to be priced between $35,000 to $40,000.

Miles Electric is known in the U.S. for their “neighborhood cars” which are more akin to golf carts. This will be the first highway ready electric vehicle from Miles Electric. The XS-500 has a top speed of around 80 mph and a range of around 120 on a single charge. The car uses a lithium ion battery pack which can be charged by plugging the vehicle into an electrical outlet.

The reasons for the delay seem to be the increasing costs of launching a vehicle in the U.S. market. New safety standards are requiring an upgrade to the air bags which is costing the company a lot more money than anticipated. The company is hoping to sell between 50 to 70 units in the first year of launch.

I am sure you have heard of India’s Tata Motors car named Nano (dubbed the “Worlds cheapest car”) which costs just $2,500 and is expected to single handedly make the traffic jams worse in India. The car is so cheap because it does not have many of the standard features in cars such as A/C or airbags. Also, the body is made of sheet metal and plastic moulding.

More than 200,000 people have lined up to buy the Nano. If you have ever been to India, you know about the horrible traffic jams with cars, trucks, scooters, mopeds, motor cycles and rickshaws vying for space on the narrow roads. Experts expect the number of rickshaws on the road to decline as many rickshaw owners switch to the Nano.

Tata Motors announced recently that they will be manufacturing hybrid and electric cars and will be introducing hybrid or even electric versions of the Nano. Given the quality of the air in India due to the pollution, this is a good move on part of the company. Could the Nano hybrid become the cheapest hybrid in the world?