Hybrid Sales Cap Off Disappointing Year With a Bad December

Hybrid sales hit their lowest mark since 2004, dropping nearly 43% in December to 17,698 units. Keep in mind that in 2004 there were considerably fewer hybrid models available, with the Toyota Prius and Honda Civic Hybrid accounting for 95% of the market. In 2008, there were at least 20 hybrid models on sale.

The decline caps a year of unexpected difficulties for hybrids, which saw high demand in the summer months, only to fall off a cliff later in the year, along with gas prices. The Prius — the pinup of hybrids — saw a sales decline of 44.7%  in December and 12.3% for the year.

Overall hybrid sales were down 10% for 2008, accounting for only 2.4% of new vehicle sales. Apparently, consumer interest in hybrids lags far behind the rhetoric surrounding them. However, car sales overall were down more than 30%, so while hybrids didn’t see any gains, they did fare better than their non-hybrid competition.

Reported Sales of Hybrids Down 42.8% in December, 10% for 2008 (GreenCarCongress)

Comments

[sheth]

No shock here. When GM execs and others were saying they didnt think hybrids were going to be more than a niche in the near future people jumped all over them as "out of touch" and supposedly addicted to 13mpg SUVs. The only reason hybrids didnt do as bad as the overall market is that gas was $4 a gallon in May and June and there are more models available. The Malibu hybrid nor Tahoe/Yukon hybrids were available until this year. 2008 was first full year for Altima hybrid as well.

[Happymantis]

I think this would the perfect time to buy a hybrid, since the low price of gas is just a temporary lull (too bad no body is going to take that into consideration), time to scoop one up on the cheap and prepare for the next gas crunch.

[GR]

I hope the companies continue developing all these fuel saving models because the price of gas WILL go back up.

I passed a guy driving a 1981 VW Rabbit Diesel yesterday and admired him. Then I got to thinking how many vehicles were available in the early 80's that got 40+ mpg. Too bad that isn't available today. It seems like we've moved backwards.

[Hybrit]

One of the big reasons the price of gasoline plummeted was the drop in gasoline demand caused in part by the move to hybrid vehicles. Drivers of every type of vehicle should salute hybrid drivers and be extra polite to them out on the road. The more hybrids and smaller vehicles on the road, the lower the price of our gasoline going forward.

[Bowrider]

Although I admire the enthusiasm for hybrids, I won't be saluting the person who is next to me in the Prius. AFter all, they might drive that Prius 100,000 per year. In those cases, I will salute them if they switch to public transportation. But, then again, I really don't want to have to get to know them that well; well enough to find out how often they drive. So, again, I just won't be saluting them any more than the guy next to me in an H2.

[SouthTX]

After the big mark ups Toyota gave to the Prius this summer, I don't believe a lot of owners are going to be happy.

[Juan Carlos]

another example of talking the talk and not walking the walk. know a group of people that outright hate bush and are left-wing extremist that hate iraq war and basically communist. you know the type. they hate the prius and hybrids because they only give you like 50mpg and cost too much.

[Zerf]

Everyone keep tying the drop in sales of the Prius with the drop in gas prices. Most people I have talked to expect gas to go back up and are still concerned about MPGs. What seems to be a bigger reason for its lack of sales is many are without jobs or are in fear of losing their jobs. People are holding on to their car longer or choosing other more cost effective fuel friendly cars. Anyone notice that sales were down with pretty much every company, even Toyota? The other part contributing to the reduction in Prius sales is the tax incentive ran out also increasing the cost to getting one. When the economy improves and the cost of gas goes back up the sales of Prius will pick back up.

[YOING]

I'm gonna agree with Zerf here, nobody is buying cars period. Whether it's a Prius or a BMW, the economy is in the tank and people have put padlocks on their wallets.

The 3rd generation Prius is right around the corner. It will be just as big a hit, if not more than it already is, especially if the gas prices go on the move again and people who got stuck with their gas sucking Tahoes and Suburbans are not going to get caught off guard again. Fuel economy is at the top of peoples wish lists now and if Toyota, Ford and Honda continue to offer hybrid alternatives, there will still be many takers.

[sheth]

yoing,

Sales declines for hybrids are down more than the market overall. Its silly to believe that gas prices are not a factor. The Prius has seen 40% declines in the last three months or so. You dont think that due to gas being cheap? Many people got caught up in the hype when gas was expensive but trading in a paid off car or economy car for a $25k Prius in order to save money at the pump is just silly. That does not make financial sense. When the economy was better people were willing to take out a new car loan just to send a message but that isnt the case anymore. If I have a paid off Corolla or Civic why would I buy a Prius?

When the economy picks up sales of all kinds of vehicles will increase, not just hybrids. Even if hybrids take off in 2009 due to a gas price hike they still constitute a small portion of the market. BTW, to date no hybrid except the Prius has acheived commercial success. Every other Toyota/Lexus hybrid except the Camry is extremely low volume as is the civic hybrid. Every domestic hybrid that has been launched is low volume. Even the Fusion hybrid is expected to sell no more than 25k units in 2009.

[Hybrit]

Sheth,
The post says hybrid sales were down 10 percent overall in 2008 and fared better than general car sales, which were down 30 percent.

[sheth]

"The post says hybrid sales were down 10 percent overall in 2008 and fared better than general car sales, which were down 30 percent. "

I can read. Sale were down ONLY 10% because new models from GM were on the market and because hybrid sales spiked in the first half of the year. In the last quarter sales tanked. Pruis sales were down 45% in December compared to 31% for GM and 37% for Toyota as a whole. Sales in the segment overall plunged over the last 3-4 months of the year as gas prices declined along with the economy. The trend that started in the last quarter will continue into 2009. Sales of the civic hybrid were down by even more than the Prius last month.

[YOING]

GM's hybrid models only sold about 14,000 units for the entire year. They made little to no impact in overall hybrid sales. Which is good since they all came with batteries that leaked anyways. Less environmental damage.

By comparison Toyota sold 241,000 hybrids in 2008.

[sheth]

"By comparison Toyota sold 241,000 hybrids in 2008. "

There were more hybrids on sale in 2008 than in 2007. That impacted overall sales. Furthermore, sales were high when gas was high. The only reason they are only down 10% is because they weren't that high in 2007. In the last quarter Toyota (and all) hybrid sales fell off the charts.

Toyota sells the most hybrids because it has access to batteries and offers the most models with hybrid tech. That will last for a while, but not forever. Ford is making a hybrid push and Hyundai and Nissan will be in the game by 2010. GM is adding the Vue 2 mode and pickup hybrids this year. By guess is everyone but Toyota will sell more hybrids in 2009.

[sheth]

"They made little to no impact in overall hybrid sales. Which is good since they all came with batteries that leaked anyways. Less environmental damage. "

The supplier issue you are talking about is related to the mild hybrids, not the two mode trucks. It was resolved many months ago.

[Hybrit]

Sheth,
2007 was a banner year for Hybrid sales for Toyota so any December decrease is in the context of comparing it to a sales peak. In fact the Prius alone outsold the entire line of VW, SAAB and several other brands at the end of '07. Ford is making a hybrid push because they license Toyota's system, as does Nissan. I have no doubt that the 2 mode hybrid system from GM is excellent technology too. But don't count Toyota out in 2009, they'll be offering a faster and more efficient Prius, a new lexus version of the Prius and a more efficent RX hybrid too.

[Dave T.]

I don't believe what Ford is using in the new Fusion is licensed from Toyota, that's all new. And I think even the Escape's system isn't really the same as Toyota's.

But you're right, there is no production capability for hybrids in the U.S. right now, mostly due to how hard it is for them to secure the hybrid batteries needed to meet demand.

[Hybrit]

Dave T, thanks for the update. I didn't know Ford had moved on from the use of the licensed Hybrid Synergy Drive system. It looks like the Fusion certainly will have some sort of enhanced system to get the kind of numbers they're predicting.

[sheth]

"In fact the Prius alone outsold the entire line of VW, SAAB and several other brands at the end of '07. Ford is making a hybrid push because they license Toyota's system, as does Nissan."

Ford does not license Toyota tech. They made some sort of agreement to avoid patent infringement issues because some of their tech is so similar. Its sad that some people think that anything good from America is really from Japan. The Altima uses Toyota tech as NIssan has no in house hybrid tech. GM and Ford did their own work on hybrids and GM is sharing its tech with BMW and Chrysler and MB.

"2007 was a banner year for Hybrid sales for Toyota so any December decrease is in the context of comparing it to a sales peak. In fact the Prius alone outsold the entire line of VW, SAAB and several other brands at the end of '07."

hybrid sales crashed in the 2nd half of the year. They were doing well in the first half when has was expensive. Prius sales were down 12% in a year where Prius sales STARTED out on fire. Hybrid sales were down overall for the year in spite of the nice start. The Cobalt and Focus outsold the PRius in 2008 as did the Dodge Ram. In 2007 the Tundra outsold the Prius as did the Impala and several other cars.

[sheth]

"Dave T, thanks for the update. I didn't know Ford had moved on from the use of the licensed Hybrid Synergy Drive system."

As Dave indicated, they never licensed Synergy Drive.

Also, GM has hybrid systems used in thousands of diesels buses in the US. Have not seen such a system from Toyota yet.

[sheth]

Dave:

I cant see the rest of the posts on the lacrosse entry. I keep seeing new comments but I cant see anything newer than yesterday.

[Hybrit]

Sheth, Ford did license Toyota technology for the Escape Hybrid as did Nissan. In return, Toyota licensed some of Ford's diesel technology. Basically Ford admitted their designs would conflict with already patented designs done by Toyota. Here's how Wikpedia explains it:

"The Escape Hybrid uses technology similar to that used in Toyota's Prius. Ford engineers realized their technology may conflict with patents held by Toyota, which led to a 2004 patent-sharing accord between the companies, licensing Ford's use of some of Toyota's hybrid technology in exchange for Toyota's use of some of Ford's diesel and direct-injection engine technology"

Get your fact straight before scolding others!

[Bowrider]

The Sheth blog....