Gas prices are up! People aren't buying hybrids! Sales up 26%!
Filed under: Hybrid
One thing is beyond doubt, the price of gas is going up. Right now in southeast Michigan it's at about $3.20 a gallon and at the rate it's been climbing it will likely be at $3.50 by Memorial Day. So you would think that under these circumstances anyone who is actually looking at a new car would be taking a serious look at a hybrid. Not according to a Detroit News writer who says that very few actually purchase a hybrid.
But of course as the old line from the numbers guys says, Tell me which side of the argument you are on and I'll give you the statistics to prove you're right. She focused on the fact that hybrids only comprised 1.5 percent of US sales in 2006. While this is true, it's also true that several mainstream hybrid models currently available only came out later in the year or earlier this year such as the new Camry hybrid, the Altima and the new Saturn Aura Green Line.
What the writer fails to note is that while still a relatively small fraction of the total market, it is a fairly rapidly growing segment of the market, and one which is likely to grow quite a bit faster in the next couple of years. April 2007 sales of hybrids grew 26% compared to 2006 and for the second consecutive month, the market share was over two percent. The hybrid sales figure also don't include General Motors sales since they don't break those out separately yet. If sales of the Saturn Vue and Aura were added in hybrid sales would be even higher. Increasing availability of relatively inexpensive mild hybrids like those from GM will also help since they are less dependent on disappearing federal tax credits.
[Source: Detroit News and Green Car Congress]
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Reader Comments (Page 1 of 1)
5-06-2007 @ 11:57AM
ThriftyTechie said...
The reason for the increase in sales is no mystery: Hybrids are becoming cheaper and are finally becoming an economical option.
Recent Prius price drops/increased incentives have finally made the Prius affordable in the sense that an owner can finally expect to offset the premium pricing (compared to other compact cars) with fuel savings.
The Saturn Aura GreenLine's technology, while not as sophisticated as the Prius, is perhaps an even more economical choice for car buyers. It has only a ~$1700 premium over the base saturn and has an available $1300 tax credit; making it only $~400 more expensive than a base Aura. Meanwhile the owner will save $200+ in gas per year (assuming 12,000 mi/yr and $3 gas).
Yes, the owner will take a performance hit, but you still get something that looks like an Aura and has the interior space of an Aura.
For non-driving-enthusiast Aura buyers, the Green-Line is actually an economical option. This is alot more than can be said for some other hybrids out there.
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5-06-2007 @ 12:44PM
Benson Leung said...
Thrifty : you are assuming that the Prius is in the same category as a compact car like a Toyota Corolla or something similar. In reality, the Prius is priced and sized well into the Mid-size category.
Its larger size and hatchback design increase its utility over an economy car.
Repeat after me : the Prius was NEVER DESIGNED to be an economy car. It gets high fuel economy, but is also bigger than an econobox in the traditional sense, with more safety features and high tech amenities.
People propping up the Prius as an example of a hybrid that makes no economical sense are missing the point.
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5-07-2007 @ 9:09AM
Joel Husk said...
I had a Saturn SL1 that got over 40 MPG and they quit making it. It was small, but quite functional. I drove it all over the place and even loaned it to people. You don't need a hybrid to get good gas mileage. The Toyota Corolla gets over 40 MPG. I now have a pickup (for utility reasons). It gets terrible gas mileage, but I find myself planning my trips more carefully and combining shopping events. My point is, I wouldn't buy a hybrid just because it got a little better gas mileage. It must fit my needs. I can control my usage of gasoline--I'm a big boy.
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5-07-2007 @ 12:23PM
calguy said...
The only reason I don't have a small hybrid: lack of a SUNROOF. I just don't really believe that the extra weight of the glass and mechancals r-e-a-l-l-y bog down the mpg THAT much.
Now, if there were a Camry wagon/Saab Wagon/BMW wagon even a Passat wagon with a sunroof, 40mpg I'd be the first in line.
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