Sales
of the Honda
Civic hybrid were up 890%
in October compared to October
2005, reaching 2,288 units
sold. The Ford
Escape hybrid and the Mariner
hybrid hit 1,602 units
combined, up 30.6% compared to
October 2005. The sales of all
other hybrid
vehicles were down in
October 2006 compared to
October 2005.
So what is the story? Why are sales of the Toyota Prius, for example, down while the Civic hybrid is up? Or why are sales of the Highlander hybrid down, while sales of the Escape hybrid are up?
Well, I'd bet it all comes down to tax incentives. October was the first month that tax incentives for Toyota hybrids were cut in half.
While Prius sales were down about 12%, Toyota still sold 8,733 of the hybrid vehicles - far more than Honda's Civic hybrid. Nonetheless, it will be interesting to see what happens over the next couple of months. If gas prices begin to again go up, I think Prius sales will be fine despite the lower tax incentive. If gas prices remain stable, this downward trend might continue.
(Source: Green Car Congress)
So what is the story? Why are sales of the Toyota Prius, for example, down while the Civic hybrid is up? Or why are sales of the Highlander hybrid down, while sales of the Escape hybrid are up?
Well, I'd bet it all comes down to tax incentives. October was the first month that tax incentives for Toyota hybrids were cut in half.
While Prius sales were down about 12%, Toyota still sold 8,733 of the hybrid vehicles - far more than Honda's Civic hybrid. Nonetheless, it will be interesting to see what happens over the next couple of months. If gas prices begin to again go up, I think Prius sales will be fine despite the lower tax incentive. If gas prices remain stable, this downward trend might continue.
(Source: Green Car Congress)
