KATHMANDU: Rising fuel prices in the United States are driving more buyers towards hybrid vehicles. Sales of hybrid cars jumped 37 percent in the two months after the Iran conflict began in late February.
According to Motor Intelligence, the growth was much higher than the overall US auto market, which increased by 15 percent during the same period.
Despite gasoline prices crossing $4 per gallon in late April, demand for fully electric vehicles remained relatively slow. EV sales increased by only 11 percent in the same period. The market is still recovering from the end of the $7,500 federal tax credit last year.
Industry analysts say many buyers see hybrids as a more practical option. Hybrid vehicles are cheaper than EVs and do not require charging infrastructure or changes in daily driving habits.
Online marketplace data from CarGurus also showed rising interest in hybrids. In April, 14 percent of vehicle searches on the platform were for hybrids, up from 12 percent in March. EV-related searches increased from 3.4 percent to 5 percent.
Japanese automaker Toyota has been one of the biggest beneficiaries of the hybrid trend. The company has already shifted its Camry sedan and RAV4 SUV to hybrid-only lineups in several markets. Toyota’s electrified vehicle sales in the US rose 34 percent after the Middle East conflict began.
Meanwhile, demand for large pickup trucks remained strong. Data from Catalyst IQ showed that pickup truck purchases in March and April rose 20 percent compared to February.
Dealers said discounts on gasoline-powered vehicles continue to attract buyers despite higher fuel prices, Reuters reported.
