BusinessAug 27, 2024
As EV Sales Collapse, Plug-In Hybrid Vehicles Accelerate — With US Figures Rising 59% In 2024’s First Quarter
Automotive Strategy
Victor Lei
Discover
A quick in-and-out 20-minute adventure can easily morph into a six-day nightmare if your EV runs out of juice. To avoid getting stranded, many are switching to plug-in hybrids. With lukewarm interest in fully electric vehicles, these dual-powered options are becoming the go-to choice for many consumers, and automakers are taking notice. Plug-in hybrids let you cruise up to 55 miles on battery power before switching to a gasoline engine.
What’s fueling the surge: Automakers are betting big on hybrids to meet tougher US emissions standards. They’re also looking to cash in on generous discounts and federal tax credits, which make combination-powered cars more enticing than EVs, whose sales flatlined with a 0% YoY increase. Seeing the shift, Ford axed plans for a fully electric large SUV to focus on hybrids instead. Meanwhile, General Motors, which phased out its Chevrolet Volt plug-in hybrid in 2019, is now planning a comeback with new plug-in hybrids by 2027. But whether plug-in hybrids are here for the long haul or just a pit stop on the road to full-on EVs is still up in the air — especially considering hybrids lead the pack in vehicle fires and mechanical issues.
