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Report: Increasing fuel prices drive hybrid, diesel and small car sales in US to outpace market in 1Q 2011

US Sales of hybrid, diesel, and very small cars outpaced overall growth in the market, according to a new report by auto analyst firm Baum and Associates. Sales of hybrids grew 33.9% in 1Q 2011 compared to 1Q 2010; diesel grew 42.9%; and small cars such as the Ford Fiesta and Honda Fit grew 23.3%. Sales of all light-duty vehicles in first quarter grew 20.2%. These results led to a hybrid new vehicle marketshare in 1Q 2011 of 2.3%; a diesel marketshare of 0.6%; and a small car marketshare of 3.4%.

For March 2011, hybrid sales grew 46.4% year-on-year; diesel sales grew 46.1%; and small car sales grew 30.0%. March 2011 new vehicle marketshares were 2.7% for hybrids; 0.7% for diesels; and 3.6% for small cars.

By contrast, Baum notes, sales of SUVs grew only 7.2% in 1Q 2011, for a marketshare of 7.8%, while sales of small crossovers grew 43.7% in 1Q 2011, for a marketshare of 9.3%.

The growth rate of small cars and crossovers relative to the overall market growth is very positive, with the small car growth rate almost doubling overall vehicle growth in March. Conversely, SUVs and pickups trail the overall market significantly. For the first quarter, small crossovers double the overall market growth rate. Given these growth rates, market share for small vehicles is impressive, with share declining in SUVs and pickups.

—Alan Baum

Baum attributes the shift to smaller vehicles to the 30% increase in fuel prices compared to a year ago.

Used vehicles. Baum notes that the used vehicle market provides a real-time snapshot of market preference. Currently, the increase in the value of the Toyota Prius exceeds all other vehicles, making clear the demand for this model in both the new and used vehicle market. Small vehicles such as the Toyota Corolla, Chevy Cobalt, Ford Focus, Honda Civic, and Nissan Versa exhibit strong gains in value.

The Ford Explorer—the previous version which is a traditional SUV—brings up the rear. The new smaller CUV Explorer is selling extremely well in its launch phase, Baum notes. Pricing on SUVs and pickups in the used market is down over the last several months.

The trends are clear: vehicle sales are strong, and consumers want hybrids, small cars and crossovers, and are shying away from pickups and SUVs even as business fleets continue to support these products in line with an overall economic recovery.

—Alan Baum

Comments

Mannstein

At the current price of $111 US per barrel of oil between $27 to $32 is due to speculation according to Wall Street insiders.

Incidentally has anyone figured out why it is that when oil hit $140 a few years back the cost per gallon at the pump was just about $4.00 yet today the cost per barrel is $30 less and the price at the pump is already approaching $4.00?

Treehugger

Mrs Manstein

The price of a commodity is not determined by the average cost of extraction but by the law of supply and demand. It is inappropriate to compare the average price of extraction with the market price when the market is supply constrained like it is now, in this case what matters is the price of the last extracted barrel which is about 80$ for the worse tar sands or ultra deep drilling. If you want the price of oil to drop below that floor you have to destruct demand permanently. Got it ? if you don't that is really bad for you because it would have helped you to swallow your bitterness and see life differently.

We have reached the end of cheap oil so please instead of messing with conspiracy kind of explanation like 90% of Americans who think that oil fall from the sky, buy a fuel efficient car en stop to complain !

SJC

The easiest method for reducing oil usage is synthetic fuels made from natural gas, coal and biomass. The synthetic gasoline can be mixed as a percentage of the refined product, produce less pollution and reduce oil imports.

HarveyD

SJC...easy of Coal synthetic fuels. According to a recent extensive study it could the most polluting type.

SJC

It depends on how you do it, would you rather that we import 2/3rd of the oil we use? Most Americans would not.

Reel$$

And these solutions are underway. But we do not want to rely on CTL simply because it is cheap and abundant. Coal is a dirty industry and has been for 150 years. Today's mining involving mountain top removal and strip mining is NOT congenial to the environment - and will not be tolerated.

We will start on a comprehensive program to install distributed (CCHP - CoGen)energy systems for residences and light industry. This will reduce the need for coal-fired power plants, remove high voltage transmission lines, increase energy security and create millions of new JOBS.

Meanwhile we convert old coal to NG-fired plants and expand the PHEV-EV conversion of light transport. In light of Japan - time to start building LFTR nuclear yielding less than 1% radioactive waste of light water reactors. This is a bone to the nuke industry, which should contribute to the new energy portfolio.

THIS is the program we are embarking on, unless we meet untoward resistance. In that case we will have to consider more disruptive technologies. Welcome aboard!

SJC

Those 600 coal fired power plants are not going anywhere. Clinton told them to upgrade if they expanded and Bush told them to forget that and expand the same old polluting way.

Unless we have a REAL energy policy that spans political parties going in and out of power, we are doomed. There are companies that make IGCC front ends for coal fired power plants, but unless the coal fired power plant companies are "motivated" to make improvements, they will not. By the way, while they are at it the IGCC plants can make synthetic fuels cleanly as well.

Herm

"And these solutions are underway. But we do not want to rely on CTL simply because it is cheap and abundant. Coal is a dirty industry and has been for 150 years. Today's mining involving mountain top removal and strip mining is NOT congenial to the environment - and will not be tolerated."

Sure beats starving/freezing to death in the dark..

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