Hybrid cars may not be attractive after all, according to Polk’s Monday report on low sales percentage and repurchase rate.
The automotive research group Polk reported that only 35 percent of hybrid car owners choose another hybrid for their next vehicle in 2011. If Toyota Prius is not factored in, the rate drops to under 25 percent. In addition, hybrid cars make up only about 2.4 percent of the new car market, decreasing from the 2.9 percent peak in 2008.
“The repurchase rates of hybrid vehicles are an indication that consumers are continuing to seek alternative solutions to high fuel prices,” said Brad Smith, director of Polk’s Loyalty Management Practice.
In fact, newly introduced compact and midsized cars have descent fuel efficiency and cost much less hybrid models.
“The lineup of alternate drive vehicles and their premium price points just aren't appealing enough to consumers to give the segment the momentum it once anticipated, especially given the growing strength of fuel economy among compact and midsize competitors,” commented Lacey Plache, Edmunds.com chief economist.
Regardless of the concerns, Smith believes that the low numbers do not imply that the hybrid is a failure, claiming that offering hybrid models is a good marketing tool.
“Having a hybrid in the product lineup can certainly give a brand a competitive edge when it comes to attracting new customers,” Smith said.
Polk reported that hybrid owners appeared to maintain brand loyalty.
“In 2011, 60 percent of Toyota hybrid owners returned to the market to purchase another Toyota,” reported Polk.
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