Car makers missing the market
Thursday, March 31st, 2005According to this Consumer Reports / Wall Street Journal article, the line up for hybrid vehicles seems to be filled with SUVs as far as the eye can see, especially for the US automakers.
It makes no sense to me that they focus so much on the big sedans and SUVs when those models are completely against the value system driving the hybridization. People that value fuel efficiency do not drive those cars.
The only company that seems to have a clue is Toyota/Lexus. By offering a hybrid luxury sedan, Lexus is appealing to the upmarket status symbol of being environmentally conscious. Though this car perhaps too big and un-svelte to really appeal to the blue-state elite, it is a step in the right direction.

Additionally, Toyota is rumored to create a hybrid Sienna minivan. This makes sense to me because it appeals economically to a potentially cash-strapped family. However it will depend on Toyota’s pricing strategy. I doubt a Prius-level premium will play well on the minivan.

Finally, the more hybrid sedans on the market, the better. However, I was overall disappointed to see which sedans were selected. The Altima and Camry, while popular, are not the most vibrant cars. (Although Altima has come a long way in recent years due to Nissan refreshing its entire lineup.) When the car companies only hybridize their most boring models, they are forfeiting the entire hip factor. Prius is sucessful in part because it is extremely well done, and in part because it is hip and distinctive. I was pleasantly surprised to see Chevy Malibu on the list. This makes sense to me because it plays a solid value for a mid-sized, somewhat stylish car.
The folks who are really blowing it are Mazda, Volvo, and Subaru - I know many a liberal who drive these cars and love em for their practicality and image. Driving a hybrid car would be the perfect alignment of interests. If Honda could make the Civic and Accord look decent, they’d probably absorb this segment.
Marketing is the art of aligning perceived attributes with consumer desires. Focusing on the boring cars, the big sedans, the SUVs - only the most mass-market popular models - proves to me that the car companies only know how to market on demographics but haven’t a clue about psychographics. Therefore my guess is that the current slate of proposed hybrids will not align with the hybrid-interested buyers’ interests and these entrants will underperform.


