Canadian sales of hybrid gas-electric vehicles have slowed as gas prices have remained relatively low, but industry experts say hybrid cars are far from doomed.
Hybrid sales peaked in 2012 at just under 25,000, according to data from DesRosiers Automotive Consultants, or about 1.6% of all new vehicles sold that year. This year, though, only 15,000 to 20,000 hybrid sales are expected, according to DesRosiers president Dennis DesRosiers. The approximately $3,000 to $5,000 price premium for a hybrid vehicle, he says, may no longer be worth it to consumers, especially when the fuel efficiency of conventional cars has improved significantly.
For example, a 2015 Toyota Prius hybrid can travel 100 kilometres on just 4.6L of gasoline in the city, and 4.9L on the highway for a starting price of $26,305, as listed on Toyota Canada's website. The 2015 Toyota Corolla LE ECO, a non-hybrid model, can be driven 100 kilometres on 7.7L of gas in the city or 5.6L on the highway, for a lower starting price of $20,710.
Analysts say hybrid sales will rebound in the future if the price of oil rises again. But there are other reasons hybrids are likely to stick around. Canada and the U.S. have both imposed strict regulations on car manufacturers, which require them to continuously improve fuel efficiency in future models. Hybrid technology is one way to achieve that goal.
Car manufacturers have simply invested too much in hybrid technology to let it fail, believes analyst Dennis DesRosiers. He thinks hybrid cars will continue to be one of many options available to consumers.
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