Hybrid Sales to Nearly Double This Year

Here is a Greenwire news.

As the national average price for gasoline continues to rise, auto dealers said last month they expect sales of hybrids to increase. Toyota Motor Sales USA increased its 2004 sales target for the Prius from 30,000 to 47,000 units, and American Honda Motor officials said they expect to sell about 20,000 Civic hybrids this year.

But federal tax credit for buying hybrids decreased from $2,000 last year to $1,500 this year. The tax deduction is scheduled to end entirely in 2007. Without that tax break, the added fuel efficiency of hybrids may not be enough to offset the higher cost of the vehicle compared to a traditional model.

The article also notes that even though doubling of hybrid sales sounds impressive, it is still a very small fraction of total number of vehicles sold.