Hybrid Sales Keep Pace In Failing Market
One of the concerns that many hybrid and green car fans have is that while the economy slides, many consumers may avoid the eco-friendly, and usually more expensive, car models. Well, a recent report on 2009’s first quarter automotive sales show that concern to be unwarranted, as hybrid’s actually increased their market share in the past three months.
To be fair, the increase was a modest one, from 2.3 percent of the market to 2.4 percent. However, considering that hybrid vehicles are generally more expensive than their fossil fuel brethren (a result of a more complicated drivetrain), that increase is a good sign in current economic times.
One of the likely reasons for an increase is hybrid sales are the tax incentives and other perks offered in many states for hybrid vehicles. Some states allow hybrid vehicles to travel in the high occupancy lane, regardless of the number of people in the car at the time, and some cities even allow hybrids free parking in certain areas. Tax incentives from some states, like California, can total $7,500, which makes hybrids much more affordable to the average driver.
The two biggest winners for recent hybrid sales have been the Toyota Prius and the Honda Insight. The Prius has long been the premier hybrid vehicle, but the Insight is looking to carve out a sizeable market segment of its own. You can read our full head-to-head comparison of the two vehicles here
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