Alternative Fuel Vehicles Reach Record High In 2012
For years, alternative fuel vehicles appeared to be a somewhat futuristic dream for environmentally concerned individuals but today they are a reality for an increasing number of U.S. consumers. Latest research from market research company Mintel shows that sales are up an astounding 73 percent, with nearly 440,000 hybrid, plug-in hybrid, and electrics sold in 2012. The rapid sales growth in hybrid and electric vehicles makes the segment the fastest growing in the U.S. for 2012, supplanting the still fast growing, compact car vehicle segment.
The number of plug-in and electric models available to the public has nearly quadrupled over the year too (from three models in 2011, to the eleven available today). And, despite the dramatic growth in 2012, hybrids and electrics will make even more headwind in the U.S. market over the coming years.
Over the past nine years the share of hybrid and electric cars has grown from virtually zero (0.5 percent) in 2004 to 3.3 percent in 2012 of all vehicles sold. Looking forward, Mintel forecasts sales of hybrid and electric cars to exceed 535,000 units by the end of 2013, or a fourteen percent increase in sales over 2012 estimates. Furthermore, by 2017 the company forecasts that sales of hybrid and electric vehicles will reach 850,000 units as newer models gain traction with consumers. The market is expected to account for five percent of the total U.S. car market by that date (2017).
It appears that consumer concern for the high and rising cost of fuel may drive the development of the market even further. More than one third (34 percent) of younger consumers aged 25-34, think that "it is easy to make back the extra money spent on a hybrid car in savings at the pump."