Larstan Business Report News Flash: Study Predicts Huge Spike In Demand For Hybrid Autos

WASHINGTON--Aug. 3, 2004--Concern about gas prices and dependence on foreign energy is causing a surge of interest in hybrid autos that integrate gas and electricity to increase fuel efficiency.

These are among the conclusions of a hybrid auto purchasing survey of 1,005 business and technology professionals - all whom are 'early-adopter' consumers working in high-tech industries. The complete study, conducted by ChangeWave Research, is available at http://www.changewave.com/hybrid.

The study found that while current hybrid ownership is low, a huge surge in demand is on the horizon that is likely to have a major impact on sales of 2006 model year hybrids, set for release in fall 2005.

Currently, one-in-four respondents (24%) report they are already seriously considering purchasing a hybrid auto. However, that number significantly increases as gasoline prices rise, and at $3 per gallon it more than doubles to 49%.

"Better Gas Mileage" is cited as the most important reason why respondents plan on purchasing a hybrid auto. Moreover, 59% say they will be more sensitive to miles-per-gallon in their next car purchase - a clear signal that current gas prices are affecting car purchasing plans.

"This level of active interest in hybrid vehicles is very significant," said Tobin Smith, founder of ChangeWave Research. "Our panel of early-adopters has proven to be a great leading indicator of future demand behavior of mass market consumers.

"For example, back in 2002 our panel gave a big thumbs-up to the idea of satellite radio systems for their cars. Their early adoption of that technology migrated to later-adopter consumers over the next 12-24 months, and I expect the same type of demand migration for hybrid cars as well."

Other findings in the report:

-- The recent slowdown in SUV sales may be short-lived, as 35% of respondents say they're more likely to purchase an SUV because of the availability of several new hybrid SUV choices.

-- Among respondents likely to purchase a hybrid auto during the next two years, the majority (59%) say they are most likely to do so in 13-24 months, which means a huge surge should occur for 2006 model year hybrids, set for release in the Fall of 2005.

-- The three top Hybrid models are all Toyotas and Hondas -- with Toyota Prius (45%) the number one model cited by respondents interested in purchasing a hybrid in the next two years, followed by two new hybrids -- the Honda Accord (35%) and the Toyota Highlander SUV (27%).

The complete Hybrid Auto Purchasing study results are available for free download at http://www.changewave.com/hybrid.