Soaring Gas Prices Boosts Demand For Hybrids
Posted on May 20, 2004
Gas prices are rising and there is no end in sight as a combination of increased consumption by China and other developing nations, the possibility of a real fuel shortage within decades and the threat of terrorist attacks force prices upward. Gas prices have risen 50 cents a gallon in many cities over the past few months. The rising prices are leading some consumers to trade in their gas guzzling SUVs for smaller vehicles or for hybrid cars. People are doing the math and realizing they may not be able to afford their large fuel inefficient SUVs and trucks if gas prices keep going up and up.
Time magazine reports that sales of hybrid cars are expected to more than double this year, to 100,000. Time also says Toyota has a 20,000 unit order backlog on its Prius hybrid car and Honda's hybrid Civic set record sales last month. At the same time sales of trucks and SUVs have started falling.