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Record Increase in Sales of Alternative Fuel Autos Continues

WASHINGTON--Newly released sales figures from R.L. Polk reveal that an increased number of alternative fuel automobiles (AFAs) rolled off dealer lots in the second quarter of 2007. Between April and June of this year, nearly 490,000 AFAs were sold nationwide, an increase of 27 percent over the same period last year, bringing the total number of AFAs to nearly 11.5 million on American roads.

Sales of E-85 capable vehicles were up almost two percent from 266,859 from the first quarter of 2007 to 272,109, while sales of hybrid vehicles showed a significant increase, up about 48 percent from 74,056 to 109,716. Sales of clean diesel vehicles also grew from 93,012 to 108,044—more than a 16 percent increase.

“We are seeing the trend in increased sales of AFAs not only in comparison to the first quarter of 2007, but also in comparison to the first two quarters of 2006. The 2007 second quarter sales figures show an increase of 31 percent in sales of AFAs over the first half of 2006. Higher gas prices and an increasing availability of a variety of models of AFAs for sale are likely drivers of this upward trend,” said Dave McCurdy, president and CEO of the Alliance of Automobile Manufacturers. “Yet, even though more AFAs are being sold, we still need more gas stations to offer biofuels, such as ethanol and biodiesel.”

Sixty models of AFAs are currently available and more are in development, including hybrid-electric, clean diesel, ethanol capable and others. Advanced vehicles need advanced fuels, including ultra low sulfur diesel, E85 ethanol, bio-diesel, hydrogen and electricity, all of which will play increasingly important roles as AFA sales continue to increase.

A recent study by R.L. Polk & Co. and the Alliance of Automobile Manufacturers found that while more than 74 percent of consumers were familiar with AFAs, the availability of fuels was still an important consideration in deciding whether or not to purchase an AFA. Overall, the study found that the most important reasons consumers listed for purchasing an AFA included concerns about protecting the environment and the desire to help in enhancing energy security.

Additionally, the study found that consumers believe that the government should fund research and development in AFAs and that the government should provide incentives to promote the growth of adequate infrastructure. Currently, out of the more than 170,000 refueling stations in the U.S., only 1,285 offer E-85, according to the National Ethanol Vehicle Coalition.

“One of the best ways to enhance energy security and reduce carbon dioxide emissions is through the use of alternative fuel autos,” McCurdy added. “Auto manufacturers are meeting consumers demand by producing more fuel-efficient vehicle options, with a wide range of attributes, at an affordable price.”

For more information about Alternative Fuel Automobiles, visit www.DiscoverAlternatives.com.

The Alliance of Automobile Manufacturers is a trade association of 9 car and light truck manufacturers including BMW Group, Chrysler, Ford Motor Company, General Motors, Mazda, Mitsubishi Motors, Porsche, Toyota and Volkswagen. For more information on advanced fuel-savings technology, visit the Alliance web site at www.autoalliance.org.