This system improves fuel economy in a number of ways.
#1. Stop/Start capability which eliminates idling time prone to non hybrid cars.
#2. Used for low speed short distance driving whenever you can turn off the ICE and utilize an electric motor for propulsion you will be more efficient. A Gas engine at its best is 28% efficient vs an BLDC electric motor at over 90% efficiency. This type of motor has only 1 moving part compare that to an ICE. Then factor in the environmental aspect and pollution. There are other reasons why an electric motor makes more sense. ICE vehicles have there place but the vast majority of people living in and around Metro areas could absolutely do away with them completely.
#3. BLDC motors have the ability with the correct motor controller to utilize regenerative breaking. However without using ultracaps for harvesting this energy you will not gain very much back into your batteries. If ultracaps are used then you can capture upwards of 50% which then starts to get more attractive.
Honda could have downsized the engine even further to a .6L powerplant that they use in there Kei cars if they wanted to turbocharge the gas engine. Along with a little more capable lithium pack and E-motor you would have an extremely frugal Insight. Or better yet take an AC20 motor attach to manual transmission with 144V Curtis Controller and then use a very small like 200cc or less gas powered genset and you have a very fuel efficient set up for urban areas.
Adding a motor/generator to an existing engine if done correctly can make substantial improvements to fuel economy. There are a lot of factors however that play into it which also make it difficult for the average Joe to get correct. Car engineers have trouble getting it correct and they spend all day trying to figure it out and trying to find that winning combination. Can an average Joe do it? Yes it has been done with varied degrees of success.
Hybrid systems will be standard equipment with in the next 30 years due to emissions standards. They will have to find creative ways to downsize ICE without sacrificing power to help meet emissions standards. The E-motor is the best answer to this problem.
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