SANTA MONICA, CA – Hybrid and plug-in electric vehicle sales fell to a 16-month low in May due to supply constraints and increased competition from lower-priced gas-powered small cars, reports Edmunds’ AutoObserver.com.
Overall, Toyota and Lexus hybrids dropped 45.1 percent for the month compared to the prior year. Honda also saw a decline of 29 percent for the month of May.
Leading the slump was the decline in Toyota Prius sales, which traditionally account for about half of the hybrid market. A total of 6,924 Priuses were sold in May, down 51 percent from the same month last year. Low supply and higher prices have made the popular hybrid less palatable to consumers. A pricing analysis by Edmunds.com found that the effective cost of a new Prius was $2,500 more in May than just three months ago.
A full analysis of hybrid and electric car sales can be found on Edmunds’ AutoObserver.com.