One of the major challenges for the hybrid cars is fuel prices. If there is a drop in fuel price, then the sales of hybrid cars are on rise and if there is an increase in fuel price then the car sales are decreasing. Hence, with the recent increase in the fuel price the sales of hybrid cars for the first half of the 2011 decreased up to 12% when compared to the same period in the last year.

The hybrid car sales for the year 2010 showed 2.9% decrease from than the 2009 sales. According to Ward’s automotive group report, the total car sales is 5.6 million units and among those sales the hybrid car sales is 2,36,300 which is just 4% of total car sales.

Total car sales in US for first half of 2011 is 21,177 vehicles, which is 1.98% of the total car sales. Sales of hybrid cars for August month is 1,664 units which is 0.16% of the total car sales in August.

According to the Polk report, the reason for negative sales growth for hybrid cars is availability of more fuel efficiency cars in the market. Toyota and Honda are the top most brands in hybrid car segments, but even these brands are also getting in to troubles.