Americans turn to hybrid cars as gasoline prices rise

Asian automakers Toyota and Hyundai have reported a significant increase in hybrid vehicle sales in the US market, as more consumers opt for fuel-efficient cars in response to rising gasoline prices driven by ongoing tensions with Iran. This trend has boosted the appeal of vehicles that offer better fuel economy.

According to the Financial Times, hybrid car sales in the US rose by nearly 20 percent in July, even as overall vehicle sales across the country declined.

Data from RBC Capital Markets shows that South Korea's Hyundai saw a 62 percent jump in hybrid sales, reaching 43,727 units. Toyota's hybrid sales increased by 22 percent, while Honda recorded a 15 percent rise. Together, these three Asian manufacturers now command 86 percent of the US hybrid market, with Ford capturing the remaining share through its pickup truck models.

The British newspaper noted that conventional hybrids, such as the Toyota Prius, improve fuel efficiency by combining a battery-powered electric motor with an internal combustion engine.

However, plug-in hybrids (PHEVs) have not gained significant traction among American consumers, accounting for just 2 percent of the market. In contrast, conventional hybrids remain an attractive option amid high gasoline prices, offering savings without requiring changes to driving or refueling habits.

Despite higher gasoline prices, electric vehicle sales have not seen a notable boost since the $7,500 federal tax credit for EVs was discontinued last year. Data from Edmunds reveals that Tesla owners are increasingly trading in their vehicles for hybrids, with a record 21 percent choosing hybrid models, particularly those from Toyota.