As we start to see those annoying commercials where spouses get shiny new cars given to them with a big red bow attached, it is important to see which of those car manufacturers are committed to the hybrid vehicle market. The day of the gas-guzzling enormous SUVs is numbered and hybrids are becoming a serious topic of conversation at many different dealerships around the country. Though they just account for approximately 3.5% of overall vehicle sales, there looks to be plenty of room for growth. Sustainable and responsible investors are questioning which car companies are making it an obligation to build cars that bring down tailpipe emissions.
Toyota (TM) still rings in as the champion selling over 50% of the hybrid vehicles on the road and 14% of their vehicle sales are hybrids. Prius had sold over 1 million units, followed by the Honda Civic Hybrid (HMC), with cumulative sales of 209,216 vehicles since 2002, and the Toyota Camry Hybrid, with 178,805 units sold since 2006. The top selling car in the U.S. by an American manufacturer is the Ford Escape Hybrid (F), with cumulative sales of 116,556 vehicles since 2004, followed by the Fusion Hybrid, with sales of 47,656 units since 2009. Clearly in term of return to investors along with quarterly sales, Toyota sure looks to be winning this battle.
Though electric vehicles are taking center stage in terms of innovation and Tesla (TSLA) certainly garners lots of attention here, in reality, electric car sales only account for a small fraction of the 3.5% of hybrid sales.
Written by Dale Wannen, Kapitall’s ESG content expert.