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In almost every way, hybrid sales boomed in May. Sales of the Toyota Prius broke the 10,000 mark for the first time since October 2008. Sales of Ford hybrids—the Fusion Hybrid and Escape Hybrid—jumped by 75 percent and 62 percent respectively compared to the previous month. And that pales by comparison to Japan's hybrid market, which is red hot.
Clearly, the crisis in the automotive industry continues. But is there opportunity in this crisis? At least one automaker thinks so. After launching its redesigned Insight sedan in March, Honda has been ramping up sales volumes of both of its hybrid models.
There was cautious optimism among auto executives this month, as overall car sales increased 24 percent from February’s number. Hybrid sales fared even better, rising by 34 percent compared to last month. Nonetheless, the market remains well below its past levels.
Sales of hybrid models in February fared somewhat better than the overall market—falling "only" 29 percent. Incentive spending on all vehicles ballooned as manufacturers desperately tried to “move metal.” Could the new and "affordable" Honda Insight bring buyers back? Also: This month's heatmap looks at sales of luxury hybrids from 2008.
The entire auto market continued to slide, bringing hybrid sales along with it. But there's good news: General Motors began shipping full-hybrid pickup trucks, opening up the hybrid market to a new pool of buyers.
There was a dismal drop in hybrid sales in late 2008. As we turn out attention to 2009, the area to watch is not vehicle launches or high-tech concepts: It’s production volumes. Introducing new hybrid and electric vehicle models is fine, but those vehicles will only have a real impact on oil consumption and emissions if they are produced and sold in large volumes. Also, check out our heat map of hybrid sales intensity.
In November, car sales went from bad to worse as sales volumes fell a bruising 37 percent from a year earlier. Even sales of small, fuel efficient vehicles lagged as tight credit, recession fears, and falling gas prices eroded demand for small cars that had surged just months earlier. Hybrids, which generally have outperformed the overall car market in recent months, fell faster than conventional vehicles in November, posting a 50 percent sales decline from a year earlier.
Last month, total sales of cars and trucks fell to 838,592 units, a 32 percent decline from October 2007. With sales hitting levels not seen since the early-1980s recession, the industry is in serious trouble. All three domestic automakers now face potential cash crises in 2009, and even traditionally strong players like Toyota and BMW are reporting staggering drops in sales and profits. Despite the challenging sales environment, hybrid sales were up slightly from September.
In September, auto sales continued their grim downward trend. Overall, the car market shrank by 27 percent relative to last year. Hybrids fared better, falling just 9 percent from September 2007 levels, but the message was clear—tight credit, reluctant consumers, and an economy plunging into recession have begun to affect all types of vehicles, hybrids included. Our earlier question if hybrids are “recession proof” is now answered.
