Global hybrid sales trends have continued to increase despite the declining global light vehicle market. Some of the fastest growing light vehicle markets in the world are BRIC nations with China, India and Brazil experiencing light vehicle growth in 2009.
Despite the overall automotive growth in these emerging markets, hybrids have declined. And not just declined, but not sold. In China from January - October of 2009, only 303 vehicles out of nearly 9.7 million sold, were hybrids. For this same time period, India had 61 hybrid sales out of nearly 1.7 million vehicles. And Brazil didn't have a single hybrid vehicle sold during this time period.
So why don't hybrids sell in these otherwise fast growing markets? My best answer for this is a combination of activities including relatively low retail gas prices, no financial incentives from the government to buy "greener" cars that would compensate for the higher sticker price and also the possibility of limited availability due to OEM distribution strategies.
I'm currently working on a global hybrid Polk View analysis that will be published soon and would like to hear your thoughts on why hybrids aren't selling in emerging markets.
Posted by Margaret Zewatsky, Global Market Analyst, Polk (02.09.10)
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