Summary
While hybird vehicle sales are slowing down, the size of the market is growing. Don't be mislead by short-term mindsets of lower fuel prices hurting hybrid sales. It's still a supply driven category in the automotive sector.
Analysis
Hybrid (gas-electric versions for now) account for 254,000 new units in the U.S. with roughly 10-12 models offered for sale. Fuel prices are not the only thing driving demand. Consistent penetration in states like California show what other factors can do to build interest for hybrid vehicles (having a "green"-minded legislation; tax advantages, perks for ability to drive in HOV lanes among congested roadways).
While it's still a new category, I feel there are many things lacking in the education of the public on hybrid's benefits. And auto industry leaders can help foster a greater awareness beyond mere mass advertising and dealer communication to showroom shoppers. For example, OE Suppliers can take advantage of partnering more directly with retail networks in conducting workshops in order to have consumers actually talk and meet with the experts responsible for implementing new technology into a hybrid vehicle. Automakers themselves can hold "owner forums" (like Ford Motor did in 2006 across varied cities) in order to further reinforce the benefits of the hybrid vehicles they've purchased.
The United States leads in global sales, followed by Japan and a distant third by U.K. US suppliers and automakers who commit to this technology have an outstanding opportunity to make this region a global center of excellence on an emerging technology. That is welcome news in a depressed industry.
