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Hybrid Car Sales Booming In Canada And Increasing. January 2005Hybrid autos only hold a tiny fraction of Canada's vehicle market but they are gaining momentum.Sales of the gasoline-electric powered autos jumped more than six-fold from 2003 to about 2,300 units last year and industry watchers predict business could double or triple again this year. The observers said yesterday the only factors that could stymie major growth in hybrid vehicles is a decline in the overall auto market, falling gas prices or not enough supply to meet demand. "But over the rest of the decade, the hybrid market will explode in North America," added Dennis DesRosiers, who heads his own auto consulting firm in Richmond Hill. Auto makers are rolling out more hybrid models to attract motorists this year. While only about four or five hybrids are available now in showrooms, the selection should climb to more than a dozen within the next two years. Furthermore, evidence shows the consumer base for hybrids is increasing from environmentalists to people who are well-educated with above-average incomes, said researcher Chris Travell. Most hybrid models combine an internal combustion engine and an electric motor driven by a battery for peak power. This allows the vehicles to deliver higher fuel economy and lower emissions with no significant loss of power. Travell, vice-president of auto research at Maritz Canada, said the industry's challenge is to demonstrate that hybrid vehicles are not only more environmentally friendly than most gasoline-powered autos but they also provide economic benefits. "By making that economic argument and getting that message across, it (the hybrid vehicle) has the potential of resonating to a greater number of Canadian buyers," Travell said. Honda Canada introduced a hybrid Civic compact car last fall that costs about $3,000 more than its cousin with a regular gasoline engine. Motorists who drive a lot can recoup the extra expense through fuel savings in about six years, said Jim Miller, Honda's vice-president of corporate affairs. But if the motorist doesn't accumulate a lot of mileage, there is not much financial benefit in buying a hybrid Civic, which already offers excellent fuel economy, he acknowledged. Honda has added a hybrid version of its Accord intermediate car this year and Miller said the company will be increasing its marketing efforts. Toyota Canada introduced the Prius compact in model-year 2000. But its annual sales totalled less than 500 annually until last year when business shot up to 1,951. That represents almost 90 per cent of the current market. Insiders say Prius sales would have been higher last year, except Toyota had problems in keeping up with demand. It hopes to provide better supply to dealers this year. The company also wants to retain its dominant position with hybrid versions of the Highlander and luxury Lexus RX 400h SUVs later this year. The company has also turned the Prius into a mid-size car with a manufacturer's suggested retail price of $30,330. Buyers can get a tax rebate of $1,000 from the Ontario government because of its environmental benefits. Ford Motor of Canada Ltd. entered the hybrid market late last year with the Escape compact sport-utility vehicle. Escape sales in the last two months of 2004 totalled 152, but Ford spokeperson Lauren More said battery supply shortages limited deliveries. General Motors of Canada Ltd. introduced the Chevrolet Silverado hybrid pickup truck last year. DaimlerChrysler Canada is offering the Dodge Ram "contractor special" hybrid pickup truck this year. SOURCE: Toronto Star | ||
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