Hybrid Owners Not Returning to Hybrids

SOUTHFIELD, Mich., - While the selection of hybrid models in the U.S. has more than doubled since 2007, only 35 percent of hybrid vehicle owners choose to purchase a hybrid again when returning to market in 2011, according to recent analysis by Polk (See Table A). If repurchase behavior among the high volume audience of Toyota Prius owners isn’t factored in, hybrid loyalty drops to under 25 percent.

However, hybrid owners appear to maintain brand loyalty when returning to the new car market. For example, in 2011, 60 percent of Toyota hybrid owners returned to the market to purchase another Toyota, according to Polk, while 41 percent of them purchased another hybrid from any brand. In the case of Honda hybrid owners, more than 52 percent of them stayed with the Honda brand, while just under 20 percent of this same owner group bought another hybrid vehicle from any brand.

“Having a hybrid in the product lineup can certainly give a brand a competitive edge when it comes to attracting new customers,” noted Brad Smith, director of Polk’s Loyalty Management Practice. “The repurchase rates of hybrid vehicles are an indication that consumers are continuing to seek alternative solutions to high fuel prices.”

Online cross-shopping data from Edmunds.com indicates that consumers are doing their due diligence to compare hybrids with similar gasoline-powered vehicles. As an example, the Honda Civic is the second most cross-shopped vehicle among both Toyota Prius and Honda Insight shoppers.

Hybrid vehicles represent just 2.4 percent of the overall new vehicle market in the U.S., according to Polk, down from a high of 2.9 percent in 2008.

“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,” according to Lacey Plache, Edmunds.com chief economist. “For EVs and PHEVs in particular, certain obstacles — including consumer unease with unfamiliar technology and the lack of an adequate recharging infrastructure — will need to be overcome before sales increase.”

Polk’s research also indicates that volatility in fuel prices between 2008 and 2011, which ranged from just under $2.00/gallon to nearly $4.00/gallon, had little impact on hybrid segment loyalty. As fuel prices continue to rise, Polk will be working closely with its customers to continue to analyze the impact.

Surprisingly, Polk also found that consumers in traditional eco-friendly markets in the U.S. (e.g. Los Angeles, San Diego, Portland, Ore. and Seattle) are no more loyal to hybrid vehicles than the nation at large. A list of the top 15 markets by hybrid loyalty is included in Table B.

Source;
http://www.autos.ca/general-news/hybrid-owners-not-returning-to-hybrids

Honda Hybrid Sales Soar Above Goal

As Toyota Motor Co. attempts to rebuild its reputation around the world, Honda Motor Co. on Wednesday said orders for its new hybrid sports car exceeded its forecast by 10 times, quietly stealing the march from its main Japanese rival.

Honda unveiled its CR-Z model in Japan roughly a month ago, making it the first mass-market hybrid sports car to hit dealerships.

The company said cumulative orders for the car had exceeded 10,000 vehicles, far surpassing its monthly sales goal of 1,000 vehicles.

Japan’s second-largest car maker plans to introduce the model in the U.S. and Europe after June, with a combined annual sales target of 40,000 to 50,000 vehicles in the three markets.

The move comes as Honda has quietly benefited from its chief rival’s woes. Toyota has recalled more than eight million vehicles world-wide, denting consumer confidence in its brand in the U.S., its biggest market.

Though Honda has publicly said that it wouldn’t offer special incentives for drivers to buy its cars over Toyota’s—unlike U.S. rival Ford Motor Co.—its brand has steadily gained more fans over the past few months.

In ALG’s Spring 2010 Automotive Consumer Attitudes Survey, Toyota fell from first to sixth place in its perceived quality score, while Honda rose to first place with a score of 83.2, followed by Nissan Motor Co.

“If [Honda] can gain sales, they are going to promote the brand at the expense of Toyota. They are not blind to the situation,” said Chris Richter, automotive analyst at CLSA Asia-Pacific Markets.

Honda is the No. 2 hybrid car maker by volume after Toyota, and its Insight hybrid car was the first mass-produced hybrid automobile sold in the U.S.

Honda’s CR-Z is the successor to its Civic CRX, a two-seater coupe that was introduced in 1984. In Japan, the CR-Z costs 2,498,000 yen ($27,630) for the high-end model.

Honda said 90% of the orders had been placed by men, with most purchasers in their 30s and 40s. Honda has nearly reached its domestic annual sales goal of 12,000 in just under a month.
Still, Honda has a long way to go to catch up with the popularity of Toyota’s Prius hybrid.

More than 27,000 Priuses were sold in February in Japan, making it the nation’s best-selling fmodel for the 10th straight month, according to the Japan Automobile Dealers Association.

“It might be too small for Americans,” said Mr. Richter, referring to the fact that the CR-Z’s North American model will have only two seats. “The Prius is a bona fide family car.”

Honda expects net profit to soar 93% to 265 billion yen in the current fiscal year ending March 31.

The company said Tuesday it expects to sell about 100,000 vehicles a year in India and Thailand of a new, low-priced model slated for launch in 2011.

The new small car will be priced around 500,000 rupees ($11,000) and is based on the popular four-door Fit model.

Source;
http://online.wsj.com/article/SB20001424052748703312504575141221683837004.html

Honda sells 2,096 Insight hybrids in April, Prius sales drop 61.5%

Consider the sleeping giant officially poked!
April U.S. auto sales numbers came out today, and Honda reports it sold 2,096 Honda Insights. That's a far cry from the 5,000 Insights that the company sold in Japan in the car's first week. Guess the pent-up demand for the Prius-alternative was stronger back home than here in the U.S. Or maybe the 478 Insights that were available at launch at the end of March were not enough and dampened enthusiasm? Whatever the reason, Honda expects big things from the little hybrid. Honda increased Insight production rates, and the company says it will be ready with 200,000 units a year, with half that expected to come to the U.S. One surprise: the Civic hybrid outsold the new Insight, 3,361 to 2,096.

The Accord hybrid (that was retired in 2007!) came in dead last with zero sales in April 2009. Overall, Honda's sales dropped 24.5 percent compared to April 2008.On the Toyota side of the fence, Prius sales for dropped 61.5 percent in April compared to April 2008. With a new model coming very soon, ToMoCo was still able to move 8,385 units last month. Overall, Toyota and Lexus sold 12,223 hybrid vehicles in April. We'll have a post on the domestic hybrids up in a bit. (UPDATE: Available here.)

Source;
http://www.autobloggreen.com/2009/05/01/honda-sells-2-096-insight-hybrids-in-april-prius-sales-drop-61/