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Has the auto industry hit peak hybrid?

Hybrids are known for their great fuel economy and low emissions, but it looks like given current market conditions, only about three percent of new car consumers are willing to pay the premium for them. A new study from IHS/Polk finds that the hybrid market share among overall US auto sales are falling, despite more models with the technology on sale than ever before.
The study examined new car registrations in March from 2009 through 2014. In that time, the auto industry grew from 24 to 47 hybrid models available to consumers, but market share for the powertrain remained almost stagnant in that time. As of 2009, hybrids held 2.4 percent of the market; it fell slightly to 2.3 percent in 2010 and grew to 3.3 percent in 2013. However, 2014 showed a drop back to 3 percent. Overall hybrid sales have been growing since 2010, but they just aren't keeping up with the total auto market.
According to IHS/Polk, this isn't what you would expect to see. Usually, each new model in the market brings along with it a boost in sales. The growth in hybrid models 2009 to 2014 should have shown a larger increase in share for the segment.

Toyota finds 10% MPG improvement in hybrid PCU

Keeping up its from-all-angles approach to efficiency, Toyota has found yet another way to eke out up to ten percent more precious MPGs in its hybrid vehicles, this time electronically. The automaker has announced the development of new silicon carbide (SiC) power semiconductors for use in power control units, which it will begin testing on Japanese roads within the next year. The PCU using the silicon carbide compound offers less electrical resistance, which improves efficiency when passing current between the battery and electric motor. It also loses less power after shutting off, and can operate at a higher frequency. The net power loss of the new PCU is just one-tenth of the current silicone-only version (the latter accounting for 20 percent of total electrical power loss in today's hybrids). The result, so far, is a claimed five-percent improvement in fuel economy in test vehicles, with the potential of ten percent by the time the new SiC power semiconductor comes to market. Additionally, the carbide wafers allow for smaller a power module, coil and capacitor, thus allowing the entire PCU to be 80 percent smaller (see the side-by-side comparison in the accompanying photo, which you can click to enlarge). We've got a while to wait before we start to see the carbide technology to start making a real-world impact. Toyota aims to begin using the SiC units in 2020. By then, with improvements in the company's other key efficiency factors - engine technology and aerodynamics - cars like the Prius will likely see significant gains in fuel economy. Read more in the press release below. Toyota Develops 'Diamond-like' Computer Chips to Boost Hybrid Mileage May 20, 2014 Toyota City, Japan – Toyota is using one of the hardest materials in nature after diamonds to develop a semiconductor chip it hopes will improve the fuel efficiency of its hybrids, such as the Prius, by as much at 10 percent. The company and its partners announced today that they have developed a silicon carbide (SiC) power semiconductor for use in automotive power control units. Toyota plans to begin test-driving vehicles with the technology on public roads in Japan within a year. The chips, made from carbide - one of the hardest materials in nature, theoretically have superior characteristics such as one-tenth the electrical power loss and 10 times the drive frequency. Toyota said the chips would also allow it to reduce the size of current automotive power control units by 80 percent.

Toyota investing $30 million in Indiana for more Highlander production

Indiana seems like the place to be if you're looking for work in a car factory. In May, Subaru announced plans to invest $400 million in its Lafayette, Indiana plant, creating 900 new jobs in the process and increasing capacity to 300,000 units per year. Now, Toyota has announced plans to invest $30 million in its Princeton, Indiana plant, 170 miles south of the Subaru factory, which also builds the Camry.
Toyota's investment will create an additional 200 jobs and increase the factory's volume by 15,000 units. Toyota announced an investment in the plant in February of 2012 that bumped volume up from 300,000 to 350,000 units. Toyota Motor Manufacturing Indiana, as the Princeton facility is officially known, produces the recently revised Toyota Highlander, the Sequoia and the Sienna. It employs 4,500 people, and this announcement represents Toyota's tenth production increase in under two years.
Scroll down below for the official announcement.