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Soaring gasoline prices have sparked a huge increase in hybrid auto sales in Canada during the first half of this year and are causing some shortages, according to automakers.
Hybrid auto sales jumped by more than 66 per cent to almost 12,000 in the first six months from the same period in 2007, figures from manufacturers show.
The increase reflects a gas price shock this year in North America that has driven motorists away from pickup trucks and sport utility vehicles to smaller, more fuel-efficient models, including hybrids.
Hybrids combine internal combustion engines with electric batteries and rechargeable energy systems to improve fuel efficiency and reduce emissions.
They have also become less expensive, which makes them more economically attractive to consumers.
Stephen Beatty, managing director for Toyota Canada Inc., said his company likely won't be able to keep pace with recent growth in hybrid sales for the remainder of the year because demand is outstripping supply.
"As the year goes on, we expect the rate of growth will slow somewhat," Beatty said.
In some regions, Toyota hybrid buyers may need to wait up to three months for specific models if they are not on dealer lots, he acknowledged.
Toyota's Japanese parent is also scrambling for more battery production for its hybrid models because of the heavy demand.
Sales of hybrids for Toyota and its Lexus luxury brand climbed 82 per cent to 8,640 in the first six months. Hybrids currently account for seven per cent of the company's sales in Canada.
Toyota, which developed the first hybrid and now offers six models, dominates the market, but other automakers plan on making inroads.
Hybrid sales at General Motors of Canada Ltd. have improved slightly, but that should change dramatically in the second half.
GM started offering a hybrid version of the popular Malibu mid-size sedan earlier this year and the company can't keep up with demand.
"Consumer demand has been strong," said Patty Faith, GM manager of media relations.
"We have worked our way through some availability constraints and expect the number will grow in the coming months."
GM also offers hybrid versions of three large sport utility vehicles and will expand the fleet to include Chevrolet Silverado and GMC Sierra pickups later this year.
Sales of the Honda Civic hybrid have shot up 40 per cent to 1,804 in the first six months. The traditional Civic is already the most popular vehicle in the country.
Ford Motor Co. of Canada Ltd. said sales of the Escape hybrid sport utility climbed 60 per cent to 886 in the first half. The company will introduce a hybrid version of the Fusion mid-size car early next year.
Several other manufacturers are also planning hybrid versions of some models.
Meanwhile, companies including GM, Toyota and Nissan are pursuing other energy alternatives to power their vehicles, such as electricity.
Although hybrids still represent only 1.3 per cent of the market, analysts say continuing record fuel costs should increase that number significantly over the next few years.
Research also shows, however, that there is continuing consumer resistance to hybrids despite high fuel prices.
Mike Renzoni, an auto specialist at Maritz Research, said its recent surveys of buyers reveals respondents, on average, would not consider purchasing a hybrid unless gasoline hits $2.35 a litre. It is currently selling for about $1.25 a litre.
