Cheaper Gas To Cause A Drop In Sales of Hybrid And Electric Cars
By George Polgar
PHILADELPHIA (CBS) - Though it comes as a cold shock to millions who have embraced the idea of hybrid and electric powered vehicles as the way to a cleaner, saner energy consumption future, 2015 will probably see a net decline in those of that shining, faith-based segment of the auto market.
Despite solid technology like the Toyota Synergy Drive hybrid system from the Prius line, offered as an option on a range of other Toyota and Lexus products, and various electric, gas-powered combos, like the Chevy Volt, Ford Escape and even the sexy new BMW i8 sports car, ultimately more consumers are fascinated by hybrid and electric cars than are actually buying them.
The entire segment, which launched in 1999, has struggled to reach a weak 3.2 percent of the US marketplace, which is now barreling toward 17 million units a year.
The drop in fuel prices broke the hybrid electric tide by wiping out the value proposition. The simple math is that to make up for the higher cost of acquisition of hybrids and electrics, fuel prices need to be $6 per gallon and higher.