Hybrid Vehicles Now Drive Demand in the U.S.

The recent surge in fuel prices has completely reshaped buying habits across North America. Shoppers who once hesitated to consider hybrid and electrified vehicles are now embracing them in growing numbers. In the U.S., while consumers remain somewhat cautious about going fully electric, more and more of them are concluding that a hybrid powertrain makes sense.

• Hybrid inventory keeps growing even as overall stock edges lower

• Hybrids remain the fastest-selling powertrain on the market for a fifth straight month

• Diesel inventory swells as fuel prices hit record highs

We first flagged this trend back in May. It appears to have firmly taken hold since then.

Overall Inventory Slips, But Not for Hybrids

Stateside, new-vehicle inventory dipped slightly to begin September, landing around 2.91 million units, about 30,000 fewer than the month before. Still, that’s roughly 40,000 more vehicles than the same period last year, as automakers and dealers work to stock up on hybrids, which remain in high demand.

Put another way, current inventory represents a 73-day supply at today’s sales pace, five days shorter than in early August and nearly three weeks shorter than a year earlier.

Hybrids continue to move off lots faster than anything else, sitting at just 64 days’ supply. This marks the fifth straight month hybrids have held that title. Yet automakers have been adding more hybrid stock than any other powertrain lately. Logic would suggest that flooding the market with more hybrid models should stretch out those turnaround times. Instead, the opposite is happening, which says a lot about how badly buyers want them.

Diesel and Electric: Two Very Different Stories

Electric vehicle inventory dropped 20 percent, settling at 72 days’ supply. Diesel models are heading the other direction, with inventory climbing to 114 days as fuel prices sit at record levels.

Back home, a litre runs around $2.75. You need deep pockets to keep a diesel running these days.

Among the six automakers that report inventory figures monthly, Ford and Mazda saw their turnaround times inch up slightly, while Toyota, Honda, Subaru and Hyundai all saw theirs shrink.

A quick look at which brands are pulling ahead shows where the bulk of hybrid supply is concentrated.

North of the border, demand is climbing too.

One thing’s certain: buyers’ wallets, more than ever, are setting the market’s pace.