As gas prices retreated this fall so did the sales of hybrids, but both phenomenon are likely to quickly reverse course. According to the San Francisco Chronicle, all passenger car sales dropped 19 percent in November, while hybrid sales dropped even faster at 31 percent.
Gas prices fell in late October, but as fast as you can say "midterm election" the price of oil coincidentally started rising after the first Tuesday in November. In Phoenix, gas prices rose 11 cents per gallon in early November. I am not saying, really, that there is cause and effect here, it's just happenstance that the folks who want to see Republicans in power would lower their prices before an election.
While the Chronicle says that the halving of the tax credit available to Toyota Prius buyers (a tax quirk that penalizes the companies that sell the most hybrids) could be hurting sales, Toyota sold more Prius' than ever in November, over 8,000 units.
Gasoline prices are not likely to hover around $2.30 for long, and hybrid sales will probably remain stable or grow as more options hit the market. The new Congress may extend the hybrid tax breaks to prompt continued sales.
