An Expanding Hybrid Market
More Models Available to American Consumers
Offers a brief introduction to new hybrids entering the market and a shift in the economics driving hybrid purchases.
Near the end of April 2007, oil reached a landmark price, trading at $120 a barrel. This, of course, pushed the average price at the pump to over $3.50 a gallon throughout most of the United States, and drivers are bracing for summer prices to top $4.00 a gallon. It is little surprise then that record numbers of Americans are downsizing their vehicles choices and purchasing hybrids. Soon they will have a much greater selection of models to choose from as more manufacturers finally see the economic sales viability in the hybrid market that most analysts have long predicted would be necessary to solidify consumer demand.
When Honda first seriously entered the American hybrid market with the Insight, most who purchased it were committed environmentalists who bought their new vehicles based largely on moral conviction. The single greatest shift in the market—one foreseen by many analysts—is consumers making hybrid purchases because of simple economics rather than as political statements or lifestyle choices. It is math driving many new hybrid purchases now, the math of what fuel economy means for commuters at the gas pump. This shift in consumer demand has driven more and more manufacturers into investing in the hybrid market and is creating more model choices for buyers.
Model Choices
Still leading the market is Toyota with the Prius, which leads the nation in both hybrid sales and in consumer satisfaction surveys. The highly anticipated next generation Prius, originally scheduled for release in mid 2008, now should reach the market in early 2009. Prius owners love their cars and it routinely out-performs other hybrids on the market in reviews conducted by automobile associations and consumer groups. As reported by "Green Hybrid", actual gas mileage reported by Prius owners beats all the competition at 48 miles per gallon. Toyota is also strong in the market for slightly larger vehicles with hybrid versions of the Camry and in the SUV market with the Highlander, a vehicle that still only gets 26 miles per gallon, but which is truly a SUV platform, although only 2WD. It is not surprising, given Toyota’s dominance in the hybrid market, that the luxury class hybrids have the strongest showing from Lexus, with the GS 450h and the RX400h.
Second to the Prius in actual reported gas mileage, at 46 miles per gallon, is the Honda Civic. Honda came early to the alternative fuel market and remains strong. In addition to the Civic, the Honda Accord hybrid is well loved by its owners, although it trails the Camry significantly in fuel economy. Joining the other Japanese manufactures in the hybrid market are the Nissan Altima and the Mazda Tribute. Most Japanese manufacturers have prototypes and concept cars in development that will push hybrid technology into even greater fuel economy with continuing strides in reliability. Elsewhere, Mercedes is expected to release a diesel-based luxury car within the next year or two and BMW has teamed with GM to develop much of GM’s emerging hybrid fleet.
US Hybrid Offerings
Meanwhile US car manufacturers are leaping into the market. By far the most successful American car currently on the market is the Ford Escape. Most industry analysts believe it will continue to lead US manufacturers for sales and consumer confidence in the near future. GM already has a presence with The Saturn VUE. It is poised to become the US maker with the greatest variety in the very near future, although the company seems intent, for the moment at least, to try and continue to fulfill the American love affair with large SUVs. These offer incremental fuel improvement at least, and they will release or are in the process of releasing a number of large platform models that feature new multi-function engine technologies. These include full size hybrid versions of the Chevy Tahoe/GMC Yukon, which they report improve fuel economy by 25% across the board and 40% in urban driving environments. Joining these will be a 4WD Chevy Silverado/GMC Sierra. They will also feature a luxury package with a hybrid Cadillac Escalade. Additionally look for the Saturn Aura and the Chevy Malibu. Joining GM, we will soon see hybrid versions of the Dodge Durango and the Chrysler Aspen.
Stepping Towards Change
Most of these American vehicles have not yet abandoned large frames nor have they significantly altered aerodynamics, but they have embraced new hybrid engine technologies and have found ways to reduce total vehicle weight. Most probably offer middling steps towards vehicles consumers will not see for several more years, but sales are predicted to grow steadily. Ultimately, if a long time coming, consumer demand will drive the market. Detailed specifications on all of these vehicles are readily available on manufacturer’s websites and virtually all the regular car review publications, such as Edmunds and Motortrend offer reviews and side by side comparisons.
