Hybrids & Diesels to Reach 11%

According to the latest projections from J.D. Power-LMC Automotive Forecasting Services, new vehicles powered by hybrid electric or clean diesel engines are expected to represent 11 percent of U.S. sales by 2012, up from 4.8 percent in 2005. This projection differs slightly from the J.D. Power-LMC Hybrid-Electric Vehicle Outlook that came out earlier this year, which expected hybrid vehicles to peak at 3 percent market share in 2010. J.D. Power-LMC attributes the growth to higher gas prices, which will drive consumers to find more efficient alternatives to the traditional internal combustion engine.

The number of hybrid electric models on the market is expected to increase from 10 in 2005 to 44 by 2012, while the number of diesel models is expected to grow from 14 to 26. A concern for automakers selling diesel models is the new U.S. Environmental Protection Agency regulation that goes into effect in 2007-2008, which requires cars and light-duty trucks to meet Tier 2 emissions standards of 0.07 grams of NOx per mile. Diesel technology, combined with low-sulfur diesel fuel that will be available at gas stations next year, will have to meet this standard before these vehicles can be sold in the United States.