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The auto industry’s problem is no longer that big cars aren’t selling. It’s that cars aren’t selling. Even fuel-sipping hybrids, which were in such hot demand this summer that they often sold after less than a day on dealer lots, are now slow sellers.

Automotive News reports, “U.S. sales of gasoline-electric hybrids fell 9.9 percent in 2008, after rising with gasoline prices early in the year and falling along with fuel costs and a collapsing auto market at the end.” Sales slowed dramatically as gas prices dropped and the economy soured. Sales figures for Toyota’s Prius, the most recognizable hybrid, tell the story: “It tallied 91,440 sales in the first half and 67,444 in the second.” In fact, in a blow to conventional wisdom, hybrid sales appear to be trending down over time. Both Honda and Toyota “sold 12.5 percent fewer hybrids [in the U.S.] last year than in 2007.” Both have new hybrids coming to market this year — a newly redesigned Toyota Prius and the all-new Honda Insight.

Hybrid vehicles represented just 2.4 percent of the U.S. vehicle market in 2008. Autoblog blames the recession, noting that the financial crisis “has caused consumers to cut way back, leading to dramatic drop in fuel prices, killing much of the argument for a hybrid’s price premium. Consumers shy away from hybrids when fuel dips below $3.50 per gallon, and the incessant clang of news stories about expensive fuel also dries up, causing the issue of fuel efficiency to fall from consciousness.”

The news may mean this is a great time to buy a hybrid. Facing the slow sales numbers, Toyota is offering a cash-back rebate on the Prius this month. Many experts believe that gas prices will climb again as the economy recovers and demand increases in India and China, so it may make sense to own a hybrid again in just a few years — so this might be a great time to get them while they’re cheap.

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