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Hybrids: better in small packages? Sales numbers say yes.

Image of Faye Sunderland
Author: | Updated: 15 May 2014 16:50

Tuesday 20 May, 2014. The Green Piece Column.

Recently, we discovered how many larger hybrid models in the US are being dropped from the range as customers fail to warm to them.

Though they might have seemed like the perfect solution; offering the size which Americans are renowned to love with a fuel efficient hybrid drivetrain for better economy, they are failing to achieve their full potential.

Chevrolet Tahoe 2014

GM seems to be largely abandoning the idea of large hybrids, dropping hybrid versions of the Cadillac Escalade, Chevrolet Tahoe and GMC Yukon SUV, while Lexus reports low interest in its in its LS hybrid model.

Heavy hybrid losses

So what gives? Why are these seeming perfect American ideals not selling?

One of the major reasons is that the inclusion of a hybrid drivetrain has a tendency to make an expensive car more expensive.

As we’ve already discussed, in Europe, the Lexus LS600h is rated with fuel economy of 32.8mpg on a combined cycle, compared to 26.4mpg for its non-hybrid Lexus 600h modelscounterpart – an increase of 24 per cent, yet the price difference of up to £27,500 between the base model petrol and the hybrid.

That means that you will never recover the price difference. Even if you drove 100,000 in these respective models and assuming you always achieved the quoted combined cycle fuel economy figures, the difference in fuel costs would amount to £4,365 (based on current petrol prices).

And it is here that the idea falls down. This, of course, coupled with the fact that those who buy large vehicles are mostly less cost-sensitive to fuel prices anyway.

Where hybrid technology is really starting to make a difference is in the smaller, more mainstream end of the market. And perhaps, even more surprisingly, the European market is where we are witnessing a growing interest in hybrid technology, despite having lagged behind the US until recently.

Smaller is better

While GM may be sounding the death knell for some of its more cumbersome hybrid models, the hybrid king, Toyota is once again showing carmakers how to do hybrid right.

Following the success of its Prius model (still the best selling hybrid car in the world), Toyota has in the past few years being expanding (or should that be shrinking?) its Hybrid Synergy Drive (HSD) system to fit in a number of other models.

Toyota Auris Touring Sports 2014

That includes the Auris hatchback, Auris Touring Sport and even the Yaris. First launched in 2010, the Auris hybrid is now the top selling hybrid car in Britain, stealing that crown for its big Prius brother, and now accounting for more than half of all Auris car sales in the UK.

What’s more, is the success the even smaller Yaris Hybrid is having across Europe. In fact, the Yaris was the top selling hybrid in Europe last year recording 49,774 sales, doubling its result on the previous year and accounting for 32 per cent of Toyota and Lexus’ total European hybrid sales of 156, 863.

That total hybrid sold figure in itself is an increase of 43 per cent, allowing hybrids to account for 18.5 per cent of all Toyota Motor Group European sales last year and 28 per cent of its Western European sales.

The Auris Hybrid follows in second place behind the Yaris Hybrid in popularity, with sales of 49,774 across Europe in 2013 – an increase of an amazing 66 per cent. Finally, the Prius accounted for 4,585 sales, of which the Plug-in Prius accounted for 442 units.

Over to the luxury Lexus brand, while the LS and GS hybrids maybe be failing to attract much attention, the more sensibly proportioned IS 300h (based on the Toyota Prius) claimed 80 per cent of all IS sales, totalling 3,390 units.

No wonder Toyota celebrate reaching six million hybrids sales globally by the end of the year.

All adds up

So it seems like the US love affair with the hybrid might be growing a little stale, just as Europeans are starting to see their benefit.

But then you only have to look at the price different between standard and hybrid models in these smaller vehicles, to see why Europeans are warming to electrification of their drivetrains.

Toyota Yaris hybrid 2012 frontIn the case of the Auris, an Icon 1.33 VVT-i is priced from £17,595 and is rated at 52.3 mpg on its combined cycle while the 1.8 VVT-i HybridSynergy costs £3,000 more at £20,595 but achieves 78.5mpg.

Assuming, as before that you always meet those mpg figures, the hybrid will cost you £752.84 a year to fuel (based on 10,000 miles per annum) compared to £1,129.98 for the non-hybrid – a saving of £377. OK that means it will still take eight years to recoup the difference in fuel costs (based on today’s rate of 130 pence per litre), but it is a lot better than the never ,ever of the situation of the Lexus LS hybrid.

Plus the hybrid model uses a much bigger and more powerful engine, so the comparison is hardly fair anyway.

Things are even better for the Yaris. Using the same fuel cost and annual mileage profile, a Yaris Active 1.5 VVT-i Hybrid, priced at £15,595, costs £729.60 in fuel a year, compared to £1,129.98 for a £13,995 Active 1.33 VVTi non-hybrid model. That means the purchase difference of just £1,600 can be recouped in just four years, through an annual fuel cost saving of £400.36.

No wonder the hybrid’s time in Europe finally seems to have arrived. Just a shame it seems to have come at a time when the American appetite has stalled, at least for now.

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