[tagname] Ten Interesting News of the Day: June 2007

Saturday, June 09, 2007

Any Hybrid Car Should Sell Easily

That is not so as it was witnessed by the measure Honda took recently. It is forced to take out the Accord hybrid out of the market because it is not generating enough sales. The reason behind it is even if the model is a top performer when compared to vehicles of its class, the high price of gas has made it not a top former as far as gas is concerned even if it has a high performing engine, but without availing any break for the pocketbook of the owners. The other reason for its failure to sell is it is also priced a bit high at $31,000 and makes 28 miles only with a gallon of gas compared to the Camry for example, that sells for $22,175 and makes up to 40 miles per gallon. The reason for that could be the Camry comes with a four-cylinder engine while the Accord has six cylinders. When compared to the Civic hybrid, Honda said it will continue bringing the particular model to the market and it sells for $22,600 and makes around 49 miles per gallon.

On the other hand the Prius model sells for $22,175 and gets up to 60 miles per gallon making it a sure winner as it is selling more than any other hybrid vehicle. The number of Accords sold was just around 25,000 since 2004, whereas the Civic hybrids had sold more than 153,000 units since they were introduced in 2001. The Prius on the other hand had sold 729,800 units since 1997 and to make things worse the Camry hybrids had sold 53,681 since 2006 showing that Honda is not winning the competition in the hybrid mid sedan race. In all of this the American car manufacturers led by General Motors Corp. are going to enter the hybrid market in big force as there are vehicles such as Chevrolet Tahoe and BMC Yukon, large utility vehicles that will have a hybrid version in the market in the near future. Also Saturn Aura and Chevrolet Malibu sedans are in line to have a hybrid version giving some of the share of the hybrid market for the American manufacturers and that is expected to boost their sales since hybrids are becoming hot selling vehicles because of the high gas price. Hybrids would garner more market share as their price comes down.





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