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The Honolulu Advertiser
Posted on: Tuesday, September 18, 2007

Hawaii hybrid sales fall; supply blamed

By Robbie Dingeman
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

A Hawai'i car dealer says that despite a survey's findings, demand remains high for hybrid vehicles such as the Toyota Prius. The Servco executive noted that hybrids caught on early in Hawai'i because of high gas prices, and now hybrid sales are increasing on the Mainland as gas prices top $3 per gallon.

ANDREW SHIMABUKU | The Honolulu Advertiser

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Hawai'i was the only state in the country where sales of hybrid vehicles declined during the first seven months of the year, but at least one local dealer said the drop probably was the result of a shortage of the environmentally friendly vehicles rather than a lack of demand.

Wes Kimura, vice president of automotive strategic planning for Servco Automotive, said he can't speak for all the hybrid cars on the market, but for Toyota and Lexus, the cars are selling well in Hawai'i. The Prius and Camry are two of the country's most popular gas-saving vehicles.

"The demand for the hybrids is still very high," Kimura said, so much so that customers who want them are sometimes waiting a month to get their new cars.

"We just can't meet the demand," he said. "Right now, we have more customers than we have vehicles."

A report by Michigan-based R. L. Polk & Co. charted new hybrid vehicle registrations as growing more than 49 percent nationwide in the first seven months of 2007, compared with the same time frame in 2006. The auto information and marketing company said that Hawai'i was the only state to report a decline in hybrid sales — a 5.3 percent drop.

But Kimura noted that hybrids were embraced early on by Hawai'i consumers, who traditionally have paid among the highest prices in the nation for gas. Now that gas prices are breaking the $3-per-gallon mark in other states, Mainland hybrid sales are picking up, he said.

"The fuel economy is really, really good," Kimura said. And that's why sales remain strong for the cars.

"It saves you in your pocketbook and it also helps to save the environment," he said.

For the 2007 Prius, the gas mileage was 60/city driving and 51/highway. Most of the hybrid vehicles being sold are automobiles powered by internal combustion engines, and are equipped with batteries recharged during driving and an electric motor to assist with power demand.

The Midwest region posted the highest increase of 56.9 percent when compared to the South, Northeast and West regions. The West region leads in total volume, anchored by the No. 1 hybrid vehicle registration state, California.

"Hybrids are being adopted by vehicle buyers in all regions at an increasing rate for many factors, which include fuel prices, differentiating themselves from other consumers and environmental activism," said Lonnie Miller, Polk director of industry analysis.

"The data indicates that hybrids have not hit plateau and that there is room for continued growth within the marketplace in all regions."

Oklahoma led all states with growth of more than 143 percent, compared with the first seven months of 2006.

The survey said large gains were made in the Midwest due in part to the Toyota Prius, which boasted an 88.3 percent increase, and the Toyota Camry, with a 214.9 percent increase from the first seven months of 2006, which marked the entry of the Camry hybrid in the United States.

While the majority of sedan hybrid registrations increased, both the Toyota Highlander and Lexus RX400h declined sharply in every region. Highlander registrations were down 24.6 percent while the RX400h was down 16.3 percent.

Following the Toyota Prius at just over 50 percent share of the hybrid segment, the Toyota Camry was the second highest registered hybrid model, taking 15 percent of the category, followed by the Honda Civic, with 9.1 percent of all new hybrid registrations. Continuing leadership in this segment, Toyota and Lexus own more than 78 percent of the hybrid market, compared with 74 percent in the first seven months of 2006.

"While the overall U.S. vehicle market is down, hybrids are a bright spot in the automotive industry, with this category projected to easily exceed 300,000 vehicles this year," Miller said. "At this point, hybrids account for more than 2 percent of the total U.S. vehicle market, which is supported by the regional growth we've seen."

Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com.