Do We Really Want Green Cars

According to US News and World Report, "Despite all the hype surrounding hybrid and electric cars, some people just aren’t buying it. According to a new study, “some people” are most consumers."

That really doesn't cut it with me. Despite the hype and the hysteria surrounding the sales of hybrids, most people don't take into account hybrid car costs. But even though hybrid cars and SUVs are still luxury items, over 1% of the US market comes from Prius sales.

Let me repeat that in a slightly different way: 1 out of every 100 cars sold is a Prius.

There are very few cars that can say they make up such a large percentage of US consumers.  There are even fewer luxury cars that even come close to it.  Other hybrid cars aren't as fuel efficient, aren't as inexpensive and just plain aren't as good as the Prius. Which is why the Prius still dominates the hybrid car market place.

In the same article, JD Powers and Associates predicts that by 2020, over 7 percent of the passenger vehicles sold will be hybrids. Do you know of any other luxury option that will be doing as well?

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End of Government Help Means Lower Prius Sales in Japan

The BBC is reporting the end of government subsidies has led to a drop in Prius sales in Japan. For almost a year and a half, Toyota has sold more Prius each month than in the prior year.

The Prius has also been the most popular car in Japan since the subsidies started. But with the end of the subsidies has come a drop of 14% over last years sales numbers. The Prius was still the number one car in September, however.

The Honda Fit was the second most popular car in Japan according the Japan Automobile Dealers Association (JADA).

"The Prius remains hugely popular, but its sales tumbled due to the end of green car subsidies," said association spokesman Toshiki Miyake.

"Many consumers put off decisions to buy green cars following the end of government incentives."

The Prius will continue to be the most popular car for months to come, as the back log of orders is still being filled.

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One Million Prius Sold in Japan and Counting

Although Toyota started selling the Prius in 1997, it wasn't until 2007 the 1 million milestone was passed. After that, it only took until 2009 to pass the 2 million mark. Now, with the incentives still in full swing and a backlog of orders, hybrid sales in Japan alone have passed the million marker. The Prius has been the top selling car in Japan for 15 months straight.

Worldwide sales have topped 2.68 million.

Toyota estimates that the hybrid vehicles they have sold since 1997 have led to approximately 4 million fewer tons3 of CO2 emissions—considered to be a cause of global warming—in Japan, and approximately 15 million fewer tons globally, than would have been emitted by gasoline-powered vehicles of similar size and driving performance.

TMC Hybrid Vehicle Chronology
Year Month Milestone
1997 Mar. Toyota Hybrid System unveiled
1997 Aug. Coaster Hybrid EV launched (Japan only)
1997 Dec. Prius launched
2000 Nov. Cumulative Prius sales top 50,000 vehicles
2001 Jun. Estima Hybrid launched (Japan only)
2001 Aug. Crown Mild Hybrid launched (Japan only)
2002 Mar. Cumulative hybrid vehicle sales top 100,000 mark
2002 Aug. Cumulative Prius sales top 100,000 vehicles
2003 Apr. Toyota Hybrid System II unveiled
2003 Jul. Alphard Hybrid launched (Japan only)
2003 Sep. Second-generation Prius launched
2003 Nov. Dyna Hybrid and Toyoace Hybrid launched (Japan only)
2005 Mar. Harrier Hybrid (RX400h outside Japan) and Kluger Hybrid (Highlander Hybrid) launched
2005 Oct. Cumulative hybrid vehicle sales top 500,000 mark
2005 Dec. Prius production commenced at SFTM's Changchun Plant, China
2006 Mar. GS450h launched in Japan
2006 Apr. Cumulative Prius sales top 500,000 vehicles
2006 May Camry Hybrid launched (for sale outside Japan)
2006 Jun. Redesigned Estima Hybrid launched (Japan only)
2006 Oct. Camry Hybrid production commenced at TMMK's plant in the U.S.; Quick Delivery
2007 May Cumulative hybrid vehicle sales top 1-million mark; LS600h/LS600hL launched
2008 Feb. Crown Hybrid unveiled (launched in April; Japan only)
2008 May Cumulative Prius sales top 1 million vehicles
2009 Jan. RX450h unveiled (launched in April)
2009 May Third-generation Prius launched
2009 Jul. Camry Hybrid production commenced at the Gateway Plant, Thailand; HS250h launched
2009 Aug. Cumulative hybrid vehicle sales top 2-million mark
2009 Oct. Sai unveiled (launched in December, Japan only)
2009 Dec. Camry Hybrid production commenced at the TMCA's Altona Plant, Australia
2010 Apr. Camry Hybrid production commenced at the GTMC's plant in China
2010 Jun. Auris Hybrid production commenced at the TMUK's Burnaston Plant, UK; Auris Hybrid launched (for sale outside Japan)
2010 Jul. Cumulative sales in Japan of TMC hybrids top 1 million units

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Prius is Number One For One Year

The Prius was once again the top selling car in Japan. That makes it one year since Toyota and their small hybrid took it away from the Honda Insight, just after the new generation Prius was launched.

According to the Japan Automobile Dealers Association (JADA) and the Japan Mini Vehicles Association, Toyota sold 27,208 Prius in Japan last month. And there's still a six month waiting list, so Toyota will continue to dominate for some time to come.

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Lexus HS 250h is Under Target

Sales of the HS 250h, the first dedicated luxury hybrid from Lexus, is well below what Toyota had targeted (source: Ward). Initially, Lexus thought they could sell 25,000-30,000 HS annually. But after the rush of sales in Japan, Lexus started keeping more units in Japan, rather than shipping them to the US.  Lexus subsequently downgraded their target to 20,000-22,000 units annually.

"Right now, there’s so much demand for that product in Japan…maybe 20,000-22,000 might be more realistic," Mark Templin, Lexus Div. group vice president and general manager-Toyota Motor Sales U.S.A. Inc., told Ward’s in November.

But now the feeling is that target may have been a stretch.

"I think we underestimated the power of the Prius brand," he says, referring to the Toyota brand’s purpose-built hybrid. "And we overestimated what the market would look like based on gas prices. But if we can do over 1,000 units a month, 1,000-1,500 units a month, we feel really good about what we’re doing in the marketplace."

Since August, when the HS 250h first went on sale, Lexus has sold just over 11,000 units. So far in 2010, they are on target to sell under 14,000 units.

The HS 250h has been affected by more than just the Prius. The Toyota recalls have affected Lexus sales, and the soft market in auto sales has been lingering.

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