Car makers are betting on the hybrid market to expand their customer base.

Toyota, for example, plans to launch about 10 new hybrid models under a long-term strategy aimed at nearly doubling profits before 2015. Luxury car makers such as Rolls Royce are also looking to plug into the action.

As an increasing number of consumers look to try out alternative vehicles, players said they are seeing an increase in the number of sales. Lexus expects hybrids to account for 36% of its sales in Singapore in 2011, and it has launched a luxury hybrid compact model to further its market base.

William Choo, commercial director of Lexus, Singapore, said: "If I were to look back at history, when we launched the Prius at that time, the reception wasn't that good, simply because there were no government incentives for hybrid vehicles. But if we look at the figures recent figures - say compare 2009 to 2010 - it was 21% volume in 2009 and this grew to 25% of our volume."

The Ct200h can travel 100 kilometres on only 4.1 litres while emitting just 94 grammes of carbon dioxide per kilometre.

The new Lexus allows drivers to choose whether or not they would like to emit carbon while driving; all they need to do is press the electric vehicle mode on their dashboard. They can also decide whether they would like to drive in eco mode or sporty mode by just turning the dial.

Mr. Choo said: "When hybrids were first introduced, the focus was on incentives, but I think over time, now it is not so much incentives. We have 40% green rebates from the government which I think is generous; of course, I think people will always say it can be higher.

"But what we are seeing is an increasing acceptance for motorists to embrace hybrid vehicles. Perhaps they are becoming more environmentally conscious; there is a need to protect the environment and of course, with hybrid vehicles, you save on fuel."

The drive to go green is now industry-wide. Ford is aiming to launch five alternative power units in the European market by 2013. BMW and PSA Peugeot Citroen have announced that they would invest US$ 138 million in a joint venture to build hybrid components from 2014.

Even luxury players are going green; one example is Rolls Royce's electric-powered Phantom luxury sedan.