Are US Hybrid Sales Peaking Already?

cartechboy (2660665) writes The Toyota Prius is pretty darn popular, especially in California. One might think that hybrid sales are on the rise as gas prices continue to fluctuate, but it seems hybrid sales in the U.S. might be peaking. Researchers at IHS Automotive found that U.S. hybrid sales haven't kept pace with the rest of the market. In the automotive world, conventional wisdom states that adding a model to a brand or segment will increase sales--but that hasn't happened with hybrids. The number of hybrid offerings has almost doubled from 24 in 2009 to 47 in 2014--but U.S. hybrid sales haven't dramatically increased. In fact, hybrid market share actually declined from 2009 to 2010, and then again from 2013 to 2014. So if consumers aren't buying hybrids, what are they buying? It seems some hybrid early adopters are now switching to plug-in hybrids or electric cars stating that these models are just nicer to drive.

Comments

I've been saying this for years.

[ScentCone]

It was inevitable: Peak Hybrid had to happen. It's getting more and more difficult to extract crude hybrid from the lower levels of the tax code, which makes it more expensive to dole out. And, they're running out of room in the Whole Foods parking lot, where things are getting real, man.

New Car Buyers

[TWX]

The number of new-car buyers is relatively inelastic. What you're seeing is the number of buyers that are willing to pay a premium for a hybrid over a vehicle with a conventional transmission.

Some buyers of hybrids actually want 100% electric cars. The hybrid was settling. Now that there are some 100% electrics, those buyers won't buy another hybrid.

Some buyers can only afford the cheapest car or only want to afford the cheapest car with the most fuel economy, and often that's a subcompact with a small four-cylinder engine and highway differential gearing, and in many instances that car gets as good fuel economy as a hybrid of of the next size-class up.

Lastly, hybrids often are equipped with more options or luxury options, which pushes up the price.

If you want hybrids to sell more, make them cheaper to buy, and sell them based on their fuel economy as the feature, not simply that they're a hybrid. That'll help attract buyers that want to avoid the dreaded "H word", and could get subcompact economy buyers to consider hybrids.

I'd personally like an all-electric, but I don't want a goofy looking car in the process. I want something like a modern Dart or 200 with a full-electric drivertrain, like the setup used in the Fiat 500e. But since Marchionnie doesn't even want to sell the 500e and is only doing so because California's laws require it, I doubt we'll see a Dart-electric or 200e anytime soon.

Keep it Apples vs Apples.

[Firethorn]

Let's check the math.

2014 Highlander 4WD Limited*: $41,960 18/24 mpg (21 averaged)
2014 Highlander Hybrid Limited AWD: $48,160 27/28 mpg (27.5 averaged)
Price difference: $6,200
Fuel cost per mile, $4 gallon: 19 cents vs 14.5
Savings per mile: 4.5 cents
Break Even: 138k miles
Time: 9.2 years.
Conclusion: Not worth it.
What if you're a 'city slicker'?
Cost per mile: 22 cents vs 15, diff 7
Break Even: 89k miles, 5.9 years. Worth it.

*Keeping the trim levels the same t