Auto Aficionados' Opinion Shifts Towards Hybrids

Anthony Fontanelle
October 2, 2007

In Canada, auto aficionados’ opinion is shifting towards hybrids, a flourishing segment in the territory. The nuances of hybrid cars such as the distinction between a series and parallel plug-in hybrid have completely deteriorated to the average auto shoppers; thanks to the success in information dissemination and automakers advertising campaigns.

Six years ago, the Toyota Motor Corp., the leader in hybrid technology, has started selling hybrids in Canada. This was made after the Japanese automaker rolled out its iconic Prius in 2000. It the sales momentum of hybrids holds, Toyota will take approximately one year to sell 10,000 hybrids.

A shift in public opinion towards the cleanest automobiles is taking place, said Stephen Beatty, the managing director of Toyota Canada Inc. And that is making hybrids once hyped by celebrities and technology early-adopters more conventional. "It's like a switch has been thrown," Beatty said in an interview with the Financial Post. "[People] have just kind of woken up to hybrid in a big way this year."

Toyota has finally overtaken General Motors Corp. as the world’s largest automaker. In Canada, the Japanese automaker has sold more hybrids through the first eight months of 2007 than in the previous year. Combined sales of Toyota and Lexus hybrids totaled 5,937 units from January to the end of August. Sales are being hampered only by available supply, added Beatty.

In Canada, federal rebates introduced in March promising up to $2,000 to buyers of the most fuel efficient vehicles have helped push up Toyota's hybrid volumes, Beatty said, even if the government has not yet begun handing out the money. The Privy Council office said that Ottawa is transferring responsibility of processing the rebate applications from the ministry of transport to the ministry of human resources. Additionally, five provinces, including B.C. and Ontario, also offer hybrid incentives.

Federal measures have sweetened the pot further for hybrid buyers in those provinces while providing a lift to sales in parts of the country that had no incentives, Beatty said.

In the United States, the Prius is one of the top ten passenger cars, divulged the Automotive News data. Sales of hybrid were bolstered when Toyota offered incentives of up to $2,000 on them to offset a decline in federal tax break.

Efforts by high-profile people like former American Vice-President Al Gore to draw attention to climate change have also energized public opinion about green issues, Beatty said.

But according to Financial Times, not every automaker breaks out its hybrid sales monthly, making it difficult to determine how many are being sold. As of 2006, hybrids still represented less than one percent of the 1.6 million vehicles sold in the Canadian market. Apparently, the market is dominated by compact cars, compact sport utilities and large pickups. Analysts say Canadians generally already drive the smallest fuel-efficient vehicles, which may be preventing hybrids from gaining more market share.

Toyota is not alone in amassing hybrid gains. Sales of Honda Canada Inc.'s Civic hybrid have increased by 80 percent to 1,421 units this year over last year. Sales of Ford of Canada's Escape hybrid jumped from 68 to 743 units. GM of Canada Ltd. said that ten percent of the Saturn Vue sport utilities and about five percent of the Saturn Aura cars it now sells are hybrids.

"Hybrids really are jumping off dealer lots," said Charles Schade, the senior director of research at J.D. Power & Associates in Toronto. "There has been clearly some general acceptance to do the right thing for the environment."

In due time, struts Canada and other auto parts could be mated to hybrids manufactured in the territory by global auto giants.

Source:  Amazines.com