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Hybrid-auto sales catch fire as gas prices burn up drivers

By John Porretto
The Associated Press

	ORLIN WAGNER / AP Emma Komp takes a test drive in a Toyota Prius at a dealership in Merriam, Kan. Prius sales were up more than 60 percent in the first quarter of 2004 from a year ago.
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DETROIT — More Americans are opting for vehicles with environmentally friendly gasoline-electric hybrid engines, new statistics show, and that trend is expected to continue because of high gas prices and more hybrid models.

U.S. registrations for hybrid vehicles rose to 43,435 last year, a 25.8 percent increase from 2002, according to figures from R.L. Polk & Co., which collects and interprets automotive information.

California had the most registrations, followed by Virginia, Florida and Washington state.

"People are buying hybrids because of mileage benefits and environmental concerns," said Lonnie Miller, director of Polk's analytical-solutions unit. "With the rising cost of gas, hybrid registrations will likely increase in 2004."

Top states for hybrids The top 12 states for hybrid-vehicle registrations in 2003: 1. California 11,425 2. Virginia 3,376 3. Florida 1,996 4. Washington 1,972 5. Maryland 1,851 6. New York l,653 7. Texas 1,651 8. Illinois 1,502 9. Massachusetts 1,335 10. Pennsylvania 1,217 11. Ohio 1,211 12. Oregon l,043 Source: R. L. Polk & Co.

Since 2000, U.S. hybrid sales have grown at an average annual rate of 88.6 percent, Polk said, but they account for only a fraction of total vehicles sold. Full-year total U.S. vehicle sales for 2003 were 16.7 million.

Hybrids draw power from two energy sources, typically a gas or diesel engine combined with an electric motor.

For now, the only versions available in the United States are small cars made by Honda and Toyota, but nearly every automaker is investing in hybrid technology.

Honda's hybrid Civic accounted for 50 percent of the registrations last year, slightly ahead of the Toyota Prius, Polk said.

Hybrid sales so far this year have been mixed.

Toyota sold 9,918 Prius models through March, 62.4 percent more than in the first three months of 2003, according to Autodata. Toyota was the first in the world to commercially mass-produce and sell hybrid cars with the Prius in 1997.

Honda said it set a monthly sales record in March for the hybrid Civic, though first-quarter sales were off from a year ago — 5,982 versus 6,494.

Because of the relatively new technology, the hybrid Civic costs about $2,000 to $3,000 more than a comparable non-hybrid Civic, the automaker said.

Hybrid choices will increase. Ford is to introduce a hybrid version of its compact Escape sport-utility vehicle this summer; luxury brand Lexus also plans a hybrid SUV. Honda plans to introduce a hybrid version of its midsize Accord passenger car this year.

Ford has said the hybrid system in the front-wheel-drive Escape allows the vehicle to get 35 to 40 miles per gallon in city driving, compared with 20 miles per gallon in a 2005 Escape with a V6 engine. It also plans another hybrid SUV and midsize sedan in the next few years.

Having more choices will make hybrid vehicles more popular, Miller said.

Ford Chairman Bill Ford has said the federal government should offer tax breaks of about $3,000 or perhaps boost taxes on gasoline to spur consumer interest.

Already, officials in some states have successfully pushed for incentives to make buying energy-efficient vehicles more appealing.

Frank Hornstein, a state legislator in Minnesota who drives a Civic hybrid, has introduced legislation that would exempt certain hybrid vehicles from sales tax.

While one state senator has called the legislation social engineering, Hornstein said he believes Minnesota should promote the technology even if it means roughly $1 million a year in lost revenue, as the state estimates.

"The cost is somewhat minimal," he said. "The state should say: 'We think this is a good thing and we want to let the auto industry know that we'd like to see more of it.' "

Copyright © 2004 The Seattle Times Company