Hybrids Down, PHEVs, EVs Up In US Sales Amid Falling Fuel Prices
With fuel prices continuing their downward spiral, one would think EVs and hybrids would become the new Hummers and Escalades to be left to rust in the backlot of the dealership. Not quite.
Detroit Free Press reports standard hybrids saw the biggest drop in sales through November 2014, from 459,375 in 2013, to 418,850. PHEVs and EVs like the BMW i8 and Nissan Leaf fared better in comparison: PHEVs rose from 43,988 to 51,490 year-over-year, and EVs jumped from 42,924 to 55,906 in the same period.
Meanwhile, SUV and trucks dominated the scene, whose rise was fueled by the improving economy and new housing starts, with lower fuel prices certainly helping matters. Sales of the former parties took 52 percent of the overall United States domestic market through November, compared 48 percent for passenger cars.
Finally, fuel economy numbers fell from a high of 25.8 mpg in August, to 25.3 mpg months later. As long as fuel prices remain on their downward trajectory, automakers may find it hard to meet the federal government’s tightening fuel standards, which are set for a fleet average of 34.1 mpg by 2016, and 54.5 mpg by 2025. The law mandating the standard is set to undergo a mid-term review in 2017.
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
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Sorry, didn't read the article - too busy staring at that gorgeous i8.
It might be good to bear in mind that while truck/SUV sales were up in November, so were small cars and CUVs, with CUV sales up 13.6% vs 9.6% for SUV/truck sales (ytd from 2013). Much of this is (still) pent up post-recession demand, industry analysts predicting sales won't sustain these levels in 2015 - irrespective of fuel prices.
I'm still waiting for CPO Prius prices to come down. So far they haven't, at least not here.
I do not believe people buy EVs to save money on gas, regardless how much cheaper electricity is compared to gasoline. If that was a primary selling point for EVs, then I think EV sales would be higher. Assuming reasonable gas prices, we're already past the point where EVs are cheaper over a car's entire life cycle. So, whatever causes people to buy EVs, whether that's genuine concern for the environment, a dislike of oil companies, fashion/trendsetting, etc., I don't see any of those things changing much with cheaper gas. Thus, EV sales being maintained is expected. On the other hand, it seems to me that hybrids are marketed mostly as a way to save gas (saving money, saving the environment). They've become so ubiquitous that they don't serve as a fashion statement anymore. As regular ICE cars get better, the benefit of hybrids gets smaller regardless of gas prices. So whether hybrid buyers are concerned with either money or the environment, there's less reason to buy a hybrid. IIRC, hybrid sales were down long before oil tanked. Again, IIRC, diesel sales are way up, but so is the diesel fuel premium. While gas around here is near $2, diesel is still around $3.50. If fuel prices are driving recent sales trends, there should be an effect seen with diesels.