High Gas Prices Driving Hybrid Demand

It is no surprise that a look at the top-10 vehicles consumers shopped in May were dominated by vehicles offering hybrids or better fuel efficiency when you consider gas prices reached an all-time high of $3.19/gallon in May. Out of the top-10 vehicles shopped, six of them offer hybrid models.

If May shopper data tells us anything, it appears that consumers shopping hybrid models strongly relates to gas prices. This led me to the question; Is there a particular price that pushes consumers over the edge? Comparing gas prices to shopper counts of vehicles that offer hybrids, it looks like the magic number is any price greater than $3.00/gallon.

Last July, gas prices reached a 2006 peak of $3.03/gallon and this May gas prices climbed to an all-time high of $3.19/gallon. We found that the largest month-over-month increase in shopper counts among the six vehicles that offer hybrid models also occured in (you guessed it) the same months, July 2006 and May 2007.

Outside of people shopping, is there anywhere else we can look to see if consumers are paying more attention to gas prices once they hit $3.00/gallon? During 2007, the last time the national average was below $3.00/gallon was the week beginning April 23rd. Starting on April 16th we find that velocity, a metric used to analyze the relative growth of a domain over a particular timeframe, for both GasBuddy.com and the US Department of Energy’s website, FuelEconomy.gov, increased substantially. The growth for both of the sites follows the same trend as gas prices did over the period; velocity peaked on May 25th concurrent with gas prices peaking at $3.26/gallon the same week. Interestingly, at its peak GasBuddy.com’s velocity was five times that of FuelEconomy.gov. This would lead me to believe that consumers are probably looking to first locate the cheapest gas in town, and then, when they realize that cheap is a relative term, look for a fuel efficient vehicle!

Where do Compete's traffic numbers come from?

Comments

[Long-ShortGuy]

Interesting:
<blockquote>
<strong>Ford and California utility to test plug-in hybrid cars</strong>

Ford Motor has announced a partnership with the utility Southern California Edison to test a fleet of rechargeable electric vehicles and said it expected to sell such plug-in hybrids within the next decade if battery technology keeps pace.

"Within five to 10 years we will start to see this technology in our hands," Alan Mulally, Ford's chief executive, said Monday at Edison International's headquarters in suburban Los Angeles. Asked if that meant plug-in hybrids would be available on showroom floors, Mulally said yes.

The remarks were the first time the No. 2 U.S. automaker has offered a timeline for producing plug-in hybrid vehicles...
</blockquote>

Source:
www.iht.com/articles/2...

[Long-ShortGuy]

More:
<blockquote>
<b>Toyota Prius sales benefit from unique design</b>

...Why has the Toyota Prius enjoyed such success, with sales of more than 400,000 in the United States, when most other hybrid models struggle to find buyers?

One answer may be that American buyers of the Prius want everyone to know they are driving a hybrid.

The Prius, after all, was built from the ground up as a hybrid, and is sold only as a hybrid. By contrast, the main way to tell that a Honda Civic, Ford Escape or Saturn Vue is a hybrid version is a small badge on the trunk or side panel.

...More than half of the Prius buyers surveyed this spring by CNW Marketing Research of Bandon, Oregon, said the main reason they purchased their car was that "it makes a statement about me."
</blockquote>

Source:
www.iht.com/articles/2...

[Long-ShortGuy]

On Volvo (owned by Ford):
<blockquote>
<b>Turmoil brewing in Sweden's love affair with big cars</b>

...The most recent available European Union statistics show that Sweden has the highest level of pollution-emitting cars in Western Europe. Many of those happen to be Volvos and Saabs, which tend to be roomy, high-horsepower models that emit a high count of carbon dioxide, a major greenhouse gas.

In 2004, when the average new car in the 15 countries then members of the European Union spewed out 163 grams of carbon dioxide per kilometer, the equivalent number in Sweden was 196...
</blockquote>

Source:
www.iht.com/articles/2...