Hybrid registration growth rate slows in 2006

Registrations for new hybrid vehicles in the U.S. rose to 254,545 in 2006 – a 28 percent increase from 2005, according to automotive information company R. L. Polk & Co.

Yet the increase is the second-lowest year-over-year increase since 2000.

California continues to lead the U.S. in hybrid vehicle registrations. Los Angeles, San Francisco and San Diego contribute to the state's leadership with more registrations than any other metropolitan market, combining for 22.3 percent of all hybrid registrations.

"Consumers know that hybrids are important to the environment, but they are not the only option," said

Lonnie Miller, director of Industry Analysis for R. L. Polk & Co., attributes the slowdown to educational factors.

"Automakers still have obstacles to overcome to prove the merit of owning a hybrid, including educating customers about developing hybrid technology; debunking the myth that hybrids are only needed when gas prices rise and general apathy or risk averse attitudes toward the relatively new-to-market technology. The challenge is for automakers to stay the course and to continue exploring fuel-efficient viable options for next-generation vehicles."

Overall, the hybrid category reflects just over 1.5 percent of all new vehicle registrations in the U.S. For the third year in a row, Toyota Prius led the segment with 42.8 percent of new registrations.

"The Prius continues to set the pace for this category. However, with several models debuting over the next two years, and many in the works for the near future, Toyota market share will be challenged. We will see if it can maintain its foothold at the top," said Miller.

Following the Toyota Prius, the Toyota Highlander was the second most-registered hybrid model, with 12.5 percent of the category, followed by the Honda Civic, with 12.3 percent of all new hybrid registrations. Combined, Toyota and Lexus had more than 75 percent of all new hybrid registrations in 2006.