Gas Prices Sink Hybrid Sales

With the recent leveling off of gas prices across North America, sales show decreasing numbers in hybrid units sold into the automotive marketplace. Last summer was a good time to be in the hybrid business as gas prices climbed to new record highs and well-known hybrids such as the Toyota Prius sold in droves. In the last few months pump prices have collapsed and so has the sales of gas-electric vehicles.

Ontario gas has been holding steady at $0.81, a 38% drop from the summer high of $1.30 per litre. B.C. gas prices hovered around $1.20 per litre as early as last October while Nova Scotia is at $0.80 per litre from similar summer high of $1.30.

In the U.S. the cost of regular gasoline has fallen from 56% to $1.79 from an all-time summer high of over $4 a gallon. In recent months hybrids have lost ground to cheaper but still fuel-efficient conventional vehicles. Automakers like Toyota and Honda Motor Company are counting on another spike in fuel prices as they recently unveiled its Lexus HS250h hybrid and new Insight hybrid respectively at this year’s North American International Auto Show in Detroit.