Hybrid sales slipping due to reduced gas prices and lost tax incentives
Hybrid vehicles hit their record sales in July of this year, which coincides nicely with some of the priciest gasoline ever on record. From September to November, however, sales for the Toyota Prius dropped by over 22 percent.
Reasons for the sales drop abound, with lowered gas prices, Toyota running out of the Federal Government allowed tax credit and consumer attitudes reportedly adding to the declines. According to an Edmunds.com market analyst, people still want to have hybrids due to their fuel economy advantages, but are not willing to pay a large premium for them while gas prices are low.
Lastly, some believe that the introduction of new technology such as new diesel particulate filters and new injectors, along with multi displacement technology costs less to consumers who want to appear green without that image impacting their pocket book a large extent. So, it appears that many hybrid drivers were not as interested in driving green as appearing to drive green if it doesn't impact their lives too much. Is it about lower gas bills, cleaning the environment, reducing dependence on foreign oil or just appearing to care? Let us know what you think.
Reader Comments (Page 1 of 1)
Ron Fischer 1:47PM (12/15/2006)
So, it appears that many hybrid drivers were not as interested in driving green as appearing to drive green if it doesn't impact their lives too much.
Perhaps hybrid shoppers' was meant? The statement reads oddly because it's inferring current shopper behavior but referencing previous buyers. If previous buyers were abandoning ownership (as we've heard SUV owners did), this statement might ring more true as written. Previous hybrid buyers likely had heightened concern about gas prices over the lifetime ownership of the vehicle based on the rapid increase in fuel price (push). Add in the smooth-driving feel of a hybrid (pull). I'd say what's changed is sense of threat of rising gasoline prices.
Is it about lower gas bills, cleaning the environment, reducing dependence on foreign oil or just appearing to care?
Surely it's a all of those things, and more. The question is in what proportion and among what groups of consumers.
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Tim 2:00PM (12/15/2006)
It's about the money, marketing and the promises of new Diesel, BEV and PHEVs coming soon. Many just like me are waiting. Cost? It should not take longer than 6-12 months for a "green" car owner to recoup their initial investment in fuel savings. Most importantly, the new Diesel, BEVs & PHEVs must look, act and cost the same as today's standard line. NEVs are embarrassing. They are confusing the mainstream.
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Mike 3:15PM (12/15/2006)
Why didn't you mention the seasonal difference in car sales between September and November (I suppose I should say monthly changes). That's why car companies report the sales from last year, same month as comparisons. More people are looking to buy cars in August and September, and less are looking in November. The Prius was up 1.5% over November, 2005.
Also, did you note all of the other bad facts in that article?
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Howard Lee Harkness 3:30PM (12/15/2006)
For me: It's lowest Total Cost of Ownership (TCO) over a period of 5-7 years for a vehicle that suits my current needs. TCO includes fuel, initial price, financing, and estimated maintenance.
To meet my current needs, it must be capable of hauling bulky (but not heavy) loads such as a couple of pallets of violins, and occasional heavier loads (up to 500 lbs or so). It must also have a range of at least 120 miles, or be easily and quickly refueled at conveniently-located public fueling stations. It must also be reliable, which biases me in favor of a new pickup rather than a used one.
None of the current crop of hybrids or EVs comes close to being suitable. They are all too expensive, too limited, or both. Plus, I don't buy the first model year of ANYTHING. Sometime next week, I plan to order a 4-cyl Toyota Tacoma, unless I find something else that meets my criteria better. And this will probably be the next-to-last new vehicle I purchase in my lifetime, if not the last; I tend to take better than average care of my vehicles, and drive them for 6-10 years, or about 200,000 miles. I drive conservatively enough that I routinely get 80,000+ miles on a set of 40K-rated radials.
BTW: When I checked two weeks ago, the biggest Toyota dealer in Plano, TX was charging $3000 *over* sticker for the Prius, and selling them pretty briskly. Gas in this area was about $2.14 at that time. That doesn't sound like a weak demand to me.
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john1701a 6:55PM (12/15/2006)
Selective data like that makes a great headline, but doesn't actually tell you the true story.
In reality, Prius sales remain strong for the year... just like year, when there was also a multi-month high. See:
10/06 8,733
09/06 10,492
08/06 11,177
07/06 11,114
06/06 9,696
05/06 8,103
04/06 8,234
03/06 7,922
02/06 6,547
01/06 7,654
12/05 9,027
11/05 7,889
10/05 9,939
09/05 8,193
08/05 9,850
07/05 9,691
06/05 9,622
05/05 9,461
04/05 11,345
03/05 10,236
02/05 7,078
01/05 5,566
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