Hybrid are luxury items

Topic: Electric Cars

I read an interesting article today in ENN about Honda's slow sales for their Insight car. The writer argues that for right now, hybrids are still luxury items and the 2 grand difference between the Insight and the Prius hasn't persuaded many buyers to switch. He makes a good point but didn't include the fact that almost all the reviews for the Insight were bad. That's saying quite a bit considering how badly the Prius drives.

Another good argument that hybrid or electric buyers aren't that price sensitive is the Tesla Roadster. When Tesla up the price from $100k to $110k, there were only a hand few who took their deposit back. The real test of price sensitivity will be next November when the Chevy Volt goes on sale. For all the Volt's technological and environmental advantages over the Prius; $40k is still $40k. Granted, the Fisker Karma is supposedly going on sale earlier then the Volt, but the Karma is $80k and truly a luxury car. While the Volt is targeted for the same potential buyers of the Prius.