Edmunds Study: What’s Happening To Hybrids in 2015?

A new report by Edmunds points to the notion that consumers are kicking their green machine to the curb in lieu of a sport utility vehicle. Edmunds reports that 22 percent of those who trade in an electric car or plug-in hybrid do so for an SUV. That figure is an increase from 18.8 last year and nearly doubles the 11.9 percent of consumers who made the SUV switch back in 2012. This past year 45 percent of consumers who traded in a plug-in hybrid or electric vehicle opted for another similar machine. That figure was at 60 percent in 2012 and according to Edmunds had never previously dropped below 50 percent. For one insider, this means that some consumers who pick an EV or plug-in Hybrid may be doing it for more than just environmental causes.

Jessica Caldwell, Director of Industry Analysis at Edmunds feels that people may be making these decisions, as they often do, with their pocketbook. In a statement Caldwell said, “For better or worse, it looks like many hybrid and EV owners are driven more by financial motives rather than a responsibility to the environment.

Three years ago, when gas was at near-record highs, it was a lot easier to rationalize the price premiums on alternative fuel vehicles. But with today’s gas prices as low as they are, the math just doesn’t make a very compelling case.” In their attempt to make a case for what may be happening with EVs and hybrids, Edmunds provided an example. Back in 2012, gas prices were skyward. The peak national price for a gallon of regular was $4.67 per gallon in October 2012. Edmunds estimated that it would take five years for a consumer to break even on the $3,770 price difference between the Toyota Camry LE and the LE Hybrid. However recently, with the national average price of gas at $2.27 (when Edmunds did their report, it’s now $2.46), breaking even on the price difference could take as much as 10.5 years.

This report comes when Edmunds is reporting that alternative energy vehicle sales are sliding. We reported previously that for the first quarter of 2015, it was all about trucks, with SUVs also performing well, however it appears that EVs and plug-in hybrids aren’t faring as well. During the first quarter of 2015, Edmunds is reporting that electric cars and hybrids made up 2.7 percent of new vehicle sales during the first quarter. Last year that figure was at 3.3 percent during the same period. Also telling is that during the same period last year SUVs made up 31.8 percent of new vehicle sales compared to 34.2 percent for the first quarter of 2015.

What have you seen at your store? Are more consumers trading in low mpg hybrids and electrics for SUVS? Do you think that this trend could change in a hurry when gas prices head north once again?