Hybrid Sales Slump - the Real Reasons

January 14, 2009 |

So the press is now full of the statistics - that hybrid sales fell by a staggering 43% during the month of December 2008. But what does this figure really mean, and to what can we attribute this big, catchy headline number? Well, as you might expect the gas lobby are quick to suggest that the previously untenable trend in prices at the pumps was just that (a short term trend) and that those who would previously populated the hybrid marketplace are now coming to their senses. Low gasoline prices are of course an issue in any setback to demand for more efficient models and sectors of the auto marketplace, but solely? It seems unlikely, given that all but the most naive consumers realize that such low prices and any suggestion of price stability at low levels is guaranteed to be short term.

prius Hybrid Sales Slump the Real Reasons

So what then, is the issue with sales right now? Yes economic factors and low levels of expendable income in the average household has a part to play - but regular auto sales are not matching the declines seen in the hybrid market, despite similar forecourt cost-cutting in both the regular and hybrid marketplaces. Is it then, that potential hybrid consumers simply aren’t getting what they want? Or that they cannot shoehorn their new-car expectations into any products currently available in the marketplace?

This could be the case, although it is a worrying theory as we enter a new era of US governance which is specifically focusing on churning out new hybrid and sustainable technology focused cars in an attempt to plug-the-dam of the Big 3. Obama has said he wants to see 1,000,000 plug-in cars by 2015. His focus is a reduction of oil dependence to obtain stability i nthe market, but will it really help? With a consumer base perhaps coming increasingly disillusioned with the quality or suitability of the hybrid products which manufacturers are attempting to supply them with, Obama could be entering a very difficult climate in which to achieve those kind of numbers.

Comments

1 Comment so far

seobro on January 14, 2009 9:47 pm
I had a prius last year and got 71.8mpg, but it is very expensive to fix. Parts are hard to get and cost a lot. The battery pack does not hold the power for long.

Toyota need to move to Lithium ion and get a bigger electric motor, one that can climb a hill.