Interest in small cars, hybrids shows steep decline over past 12 months
(February 2010) AutoPacific regularly tracks the impact of fuel prices on the type of vehicles Americans will consider buying. The results for the just completed Fuel Price Impact Survey show very surprising results.
Governmental mandates and consumer desires appear to be moving at cross-purposes. At a time when Congress and the Obama Administration are mandating more fuel efficiency, fuel price increases have moderated. Consumer preferences are swinging in the direction opposite what the government desires. Consideration for small cars and hybrids, the most fuel efficient vehicles, is down dramatically, while consideration for pickups and SUVs is up dramatically.
Over 1,000 respondents completed AutoPacific’s January 2010 wave of its Fuel Price Impact Study.
Fuel Prices Increasing at a Moderate Pace: The median fuel price paid in January 2010 was $2.69 per gallon, up only 21 cents from July, 2009 but up 80 cents per gallon from January, 2009. Fuel prices increased significantly over the first half of 2009, but have significantly moderated over the last six months.
Interest in Small Cars and Hybrids Fades: When asked what kind of vehicle respondents would select if they were to replace their primary vehicle today:
* In January 2009 24% selected a Small Car
* By June 2009 Small Car consideration had fallen by a third to 16%
* Small Car consideration fell another third to 12% in January 2010
In one year, consideration for Small Cars has fallen by a half. During this time, the price of fuel went up, but the interest in small cars went down. Perhaps Americans have become accustomed to higher gasoline prices.
The story with respect to hybrids is even more dramatic. Despite an 80 cent per gallon increase in the price of fuel, hybrid intention is down from 25% a year ago to 14% six months ago to 11% in January 2010. Is the bloom off the hybrid rose?
Are SUVs and Pickups on the Comeback Trail? The small car results are in dramatic contrast to the replacement vehicle intention with respect to SUVs: 16% a year ago, 20% six months ago, and 26% in January 2010 - an increase of 63%. Pickup truck intention follows a similar pattern: 10% a year ago, 12% six months ago and 15% this January, for a 50% increase. “What a short memory we have” said Jim Hossack, the studies’ author.
AutoPacific