Hybrid vehicle sales revving up as EV demand sputters
Most Americans consider emissions when buying a vehicle, but more choose hybrids as a 'green' alternative over EVs
Auto expert Mike Caudill explains data proving consumers arent ready yet for a full transition to electric vehicles.
Polling shows most Americans consider emissions when buying a new car, but despite the push for electric vehicles, data shows consumers prefer other "green" alternatives.
Brian Moody, executive editor at Kelley Blue Book, says the hottest auto trend for this year is: "Hybrids – a lot more hybrids."
The 4Xe logo is displayed on a Jeep Wrangler 4Xe plug-in hybrid that is displayed on the sales lot at Hilltop Chrysler Jeep Dodge Ram on April 5, 2024, in Richmond, California. (Justin Sullivan/Getty Images / Getty Images)
In an interview with FOX Business, Moody said it is overstating to say that people have rejected electric cars entirely, because 2023 was the first year the sale of EVs topped 1 million. But the growth of hybrid sales was higher.
Hybrids accounted for 9.3% of new light vehicle registrations in the U.S. from January to November 2023, outstripping those of EVs by 1.8 percentage points, according to S&P Global Mobility data.
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Moody explained that buyers like hybrids because they are relatively affordable and get great gas mileage. At the same time, hybrids work with existing infrastructure and require less time for refueling than an EV.
An electric car charges at a mall parking lot on June 27, 2022, in Corte Madera, California. Moody says many consumers are put off about the time it takes to charge an EV. (Justin Sullivan/Getty Images / Getty Images)
When it comes to why many consumers prefer hybrids over all-electric, he said it is more about "time anxiety" than the "range anxiety" people have about being able to find a charging station.
He gave the example of parents of young children, wondering how they would have to find an extra 45 minutes in their day for recharging their EV.
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Moody pointed to findings from a Kelley Blue Book study from last year showing a majority of Americans said environmental concerns factor into their vehicle purchasing decisions, but most also said they felt a hybrid was a better fit for their lives than an EV.
Hybrid vehicle sales in the U.S. are surging as consumers see them as a familiar but "green" alternative to EVs. (iStock / iStock)
Moody believes it boils down to the fact that hybrid technology is familiar to people, and they still feel like they are helping the environment.
"I think if the average person drove an electric car, they would like it. I really do," he said, pointing out that EVs are quiet and quick, and have some cool features. Still, he added, "Americans are fairly leery of… something that they're told they have to do."
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So get ready for the continued rise of hybrids and plug-in hybrids, Moody said, noting, "You see automakers saying that's the way we're going for right now."
Reuters contributed to this report.