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Hybrid makers and proponents of the fuel-efficient cars said Wednesday they hoped that oil’s spike to a record $73 per barrel would boost hybrid vehicle sales, which have fallen from previous levels.

“Fundamentally, we see a positive correlation between gas prices and sales of vehicles,” said Sage Marie, a Honda spokesperson. “We’re certainly seeing fuel economy becoming a more important issue with consumers as we continue to see gas prices rise.”

The record oil prices come after J.D. Power and Associates and other research firms said hybrid sales growth could be slowing. Hybrid sales grew 97 percent in 2004, and 140 percent in 2005, reaching 205,749 units last year, according to J.D. Power.

In the first three months of this year, hybrid sales were up only 37 percent, compared with the same period in 2005. In March, hybrid sales grew a lackluster 7.5 percent.

Hybrids combine a gas engine and an electric motor to boost fuel economy. At least, that was the original intention of this green technology.

But some car manufacturers have begun looking at hybrid technology as not so much a way to improve gas mileage as a way to improve performance.

Toyota Motor recently unveiled two Lexus luxury sedan hybrids in that design direction, the GS 450h expected to hit showrooms in May, and the LX 600h expected to launch next year (see Lexus Hybrid Pushes Power). The cars have impressive 339- and 435-horsepower powertrains, with much-less-impressive fuel economy in the 20 miles per gallon (mpg) range.

Another example is the 2006 Honda Accord Hybrid that went on sale in January.

Rated for 25 mpg in the city and 34 mpg on the highway, the Accord Hybrid gets much less gas mileage than the company’s other hybrid models, but has 253 horsepower. For comparison, the non-hybrid Accord has only 244 horsepower. The Insight—the most fuel-efficient hybrid on the market—gets 60 mpg in the city and 66 on the highway, and has only 73 horsepower.

The idea behind these so-called “muscle hybrids” is simple: expand the hybrid powertrain into different types of cars to appeal to more drivers and get hybrid technology into the mainstream.

Driving Hybrids to Popularity

Cindy Knight, environmental communications administrator at Toyota Motor Sales, said the car company was driving in that direction last year (see New Age of Hybrid Cars).

“Our target audience is more mainstream, and a larger audience than we originally had for the hybrid,” she told Red Herring last May. “The first goal was to make the most fuel-efficient car, but the fact is, the mainstream public does not place fuel efficiency as top priority for choosing a car. That might change—and market research indicates that we’re changing consumer behavior—but power is very highly valued, and the strategy is that people will choose the hybrid for power, get used to it, and will be open to more and more hybrids.”

Some analysts applaud that concept. In fact, Dan Benjamin, a senior research analyst for ABI Research, has said he is not sure whether the General Motors’ Saturn VUE Green Line Hybrid—expected to come out next summer—will be successful because it won’t offer enhanced performance.

“The value proposition of a hybrid is technology for a few thousand more that will give a combined boost in performance and fuel economy,” he said. “Maybe if you have to choose one, it’s not worth it. Some of these cheaper hybrids, like the Saturn VUE, won’t offer any acceleration assistance or performance boost at all. I don’t think that will make hybrids more popular.”

GM says it plans to stick to its strategy of using hybrids to enhance mileage, not performance, albeit mostly in SUVs and trucks (see Camry, Saturn Hybrids Unveiled).

Wanting More Green

Unlike analysts such as Mr. Benjamin, a number of environmentalists have said they are disappointed with the move toward muscle over mileage, and there are signs that drivers might also be disappointed.

Honda Accord Hybrid sales in the first three months this year were off 51 percent from last year, according to the company. The company sold only 581 Accord Hybrids in March, compared with 28,623 conventional Accords. And at the New York International Auto Show last week, Honda Executive Vice President Dick Colliver said Honda might cut production of the Accord hybrids because of the slow sales.

In more evidence that the performance-based hybrid might not be dazzling customers, Ford said it would offer no-cost financing in an attempt to sell more Escape and Mercury Mariner hybrid SUVs. The high-mpg hybrids, such as the Toyota Prius and the Honda Civic, are still the most popular.

But car manufacturers on Wednesday said those factors aren’t enough to make them rethink their strategies.

“The strategy is still to prove to people that hybrid technology entails no sacrifice,” Toyota’s Ms. Knight said. “If it’s performance you’re after, you can have that with 80 percent fewer emissions and some fuel economy. If it’s fuel economy you want, you can get that too, with fewer emissions. We’re trying to suggest that hybrids can try to be all things to all people—it’s not one or the other; it’s both. Performance and fuel economy are both part of our strategy, and we don’t see ourselves adjusting that based on short-term changes in the price of gas.”

Sticking to the Strategy

High-performance Lexus hybrids make sense because the Lexus brand is different from the Toyota brand, she said, adding that Lexus customers are looking for luxury and a V8 engine.

“The Lexus customers like the lower emissions and that mileage is 30 percent lower than it would be in a comparable V8,” she said. “They like that 30 percent because they like fewer trips to the pump—it’s a time saver—but performance is something Lexus customers are looking for more than customers of the Toyota brand.”

Still, Toyota doesn’t plan to give up on more compact hybrids either, she said. The Camry Hybrid, expected to come out in May or June, will be more like the Prius, offering excellent fuel economy and low emissions, said Ms. Knight. So far, Toyota has made no further announcements about future performance-based hybrids.

Honda’s Mr. Marie said the company is not giving up on Accord Hybrids, despite the slow sales. “I think there’s certainly still a place in the market for Accord Hybrids,” he said. “It’s fun to drive, and it allows the consumer to do so with great fuel economy. An argument can be made that it’s the best of both worlds.”

While Honda is considering cutting production, the company’s production flexibility allows adjustments with very little cost, and that means that production can also be easily raised if demand rises, he said.

Mr. Marie attributes slow sales to the fact that the “all-new” Accord Hybrid has only been on sale for two months. “There is an awareness issue,” he said. “I think we just need to give it time.”