Wednesday, April 11, 2012 | Edited by Daniel Moores
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Loyalty to Hybrid Cars Elusive Most Americans aren't sticking with hybrids. A study released Monday by auto research firm R.L. Polk shows only 35 percent of hybrid vehicle owners chose to purchase a hybrid again when returning to the market in 2011. Hybrids typically cost $5,000 or $7,000 more than a traditionally powered vehicle, and the payback period can take years. The number of hybrid models offered by automakers has doubled since 2007. If repurchase behavior among owners of the high-volume Toyota Prius isn't factored in, hybrid loyalty drops below 25 percent. Hybrid owners, however, are maintaining brand loyalty when returning to the new car market, Polk says. In 2011, 60 percent of Toyota hybrid owners bought another Toyota, according to Polk, and 41 percent purchased another hybrid from any brand. More than 52 percent of Honda hybrid owners stayed with the brand, while just under 20 percent of this same owner group bought another hybrid vehicle from any brand. "Having a hybrid in the product lineup can certainly give a brand a competitive edge when it comes to attracting new customers," said Brad Smith, director of Polk's Loyalty Management Practice. "The repurchase rates of hybrid vehicles are an indication that consumers are continuing to seek alternative solutions to high fuel prices." Online cross-shopping data from Edmunds.com shows consumers are comparing hybrids with similar gasoline-powered vehicles. The Honda Civic is the second-most cross-shopped vehicle among Toyota Prius and Honda Insight shoppers. Hybrid vehicles represent just 2.4 percent of the overall new vehicle market in the U.S., according to Polk. That's down slightly from a high of 2.9 percent in 2008. "The lineup of alternate drive vehicles and their premium price points just aren't appealing enough to consumers to give the segment the momentum it once anticipated, especially given the growing strength of fuel economy among compact and midsize competitors," said Lacey Plache, Edmunds.com chief economist. For electric vehicles and plug-in hybrid electric vehicles in particular, he said, "Certain obstacles -- including consumer unease with unfamiliar technology and the lack of an adequate recharging infrastructure -- will need to be overcome before sales increase." Polk's research also indicates that volatility in fuel prices between 2008 and 2011, which ranged from just under $2 a gallon to nearly $4 a gallon, had little impact on hybrid loyalty. Polk found that consumers in traditional eco-friendly markets in the United States -- Los Angeles, San Diego, Seattle and Portland, Ore. -- are no more loyal to hybrid vehicles than the nation at large. West Palm Beach, Fla., was the most loyal, with 43.2 percent of owners buying hybrids again, followed by Phoenix (40.2 percent), Orlando (39.9 percent) Tampa (39.9 percent), St. Louis (38.4 percent) and Boston (38.4 percent). (Source: The Detroit News, 04/10/12) Click here to email to client Back to Radio Sales Today |
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