The boxy Prius, which runs on both a gasoline-powered engine and an electric motor, has won praise for its low emissions, advanced technology and
high-fuel economy. It was the first mass-produced hybrid automobile, and it has become a favorite for environmentalists.
But there is increased competition in the overall hybrid
market, says Global Insight analyst Rebecca Lindland. "Also, when you do the economics of ownership, it's not always the best purchase for a lot of people," she says.
While the hybrid has a stated Environmental Protection Agency mileage return of 50 or 60 miles per gallon, that is only achievable when the vehicle is used around town or in stop-and-start driving in heavy traffic. Lindland says consumers are starting to question if they are saving money in the long run.
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