Operations

Hybrid Vehicle Sales on Pace to Reach Record in 2007

Posted on August 8, 2007 by LCT Staff - Also by this author - About the author

WESTLAKE VILLAGE, Calif. — Hybrid vehicles are on course to achieve record sales in 2007, increasing by 35% compared with 2006, according to the J.D. Power and Associates 2007 U.S. Hybrid Vehicle Forecast Second Quarter Update.

According to the report, an estimated 187,000 hybrid vehicles were sold in the U.S. market through the first half of 2007, accounting for 2.3% of the total U.S. new light-vehicle market through June. While sales of hybrid vehicles are projected to decline slightly in the second half of the year, the market is still on track to sell 345,000 hybrids in 2007 — a 35% increase from the 256,000 hybrids sold in 2006.

"High gas prices during the first half of 2007, coupled with automakers lowering the price premium for most hybrid models, have given the hybrid market a boost," said Mike Omotoso, senior manager of global powertrain forecasting for J.D. Power and Associates.

The Toyota Prius continues to be the most popular hybrid model, selling 94,503 units through June 2007 and representing 50.6% of all new hybrid vehicles sold in the U.S. market in 2007. Prius sales were bolstered earlier this year when Toyota began offering incentives up to $2,000 to entice customers.

"Toyota realized that they had to offer incentives for the Prius to offset the decrease in the federal tax break, which decreased from more than $3,000 in 2006 to less than $1,000 in 2007," said Omotoso. "The incentives helped Toyota maintain a strong sales pace for the Prius."

Despite the entry of nine new hybrid vehicle models in the market in 2007 — seven of which are expected to go on sale between July and December — the Prius is projected to continue as the sales leader among hybrid vehicles during the next few years.

Competition in the hybrid segment is projected to intensify further in the coming years. According to the report, there will be as many as 65 hybrid models — 28 cars and 37 light trucks — in the market by 2010, with sales expected to reach nearly 775,000 units, or 4.6% of the total U.S. new light-vehicle market.

"While consideration for hybrids is falling, interest in hybrids is still strong among consumers, and projections indicate steady growth for this segment in the coming years," said Omotoso. "Bringing additional hybrid models to the market will serve to fuel that interest."

Source: Automotive Fleet

View comments or post a comment on this story. (0 Comments)

More News

Dawson Rutter's Company Named Best Car Service

Commonwealth Worldwide earns the Boston ranking for the seventh time as it marks 35 years of chauffeured service.

Family Business Becomes Millennial’s Passion

eNews Exclusive: Fast 40 operator Nick Boccio got his start in a garage and has since taken up a desire to continue his grandfather’s legacy.

Luxury Vs. Affluent Travelers: What's The Difference?

Luxury spenders are more driven by experiential and authentic experiences.

Company Aims To Reach Peak Operating Performance

eNews Exclusive: Abdou and Hillary Louarti believe industry involvement and education help them stand out in a crowded market.

Uber Is Imploding, But Does Anyone Really Care?

The TNC may be a cesspool of sexism and harassment, but efficiency tends to trump corporate intrigue.

See More News

Facebook Comments ()

Comments (0)

Post a Comment

Submit

Blog

See More

LCT Store

LCT Magazine - June/Fact Book 2017 $12.95 * Facts & Stats * Directors & Guides *



Connect

Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close