EVs still cost too much. As of September 2023, the average cost of an EV was still over $53,000. Automakers keep rolling out more and more expensive models. A bad charging infrastructure that isn’t being expanded fast enough isn’t helping matters. Things are so bad that as, Bloomberg reports, many buyers are choosing to purchase hybrids instead.
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Automakers should be investing more in hybrids. And the data is there to support this. Data from analytics firm GlobalData shows hybrid sales in the U.S. have doubled since 2020. And as GlobalData’s executive vice president for automotive Jeff Schuster pointed out to Bloomberg, changes like the pivot to EVs in the auto industry don’t happen overnight. Hybrids are a bridge to electrification.
The auto industry doesn’t function in a mode where you just flip a switch and everything’s different. Hybrids are “a way for the mass market to start edging into electric vehicles.”
Even automakers like Ford, that have invested billions in EVs, are realizing this. Ford is doubling production of the F-150 Hybrid and is planning to put more hybrid options in its lineup over the next five years. The popularity of hybrids came as a surprise to Ford CEO Jim Farley who said in an earnings call over the summer “We have been surprised, frankly, at the popularity” of hybrids.” How he’s surprised at this when the company is having trouble keeping up with Maverick Hybrid demand is beyond me; Ford says Maverick Hybrid sales have accounted for 60 percent of the total model’s sales.
Hyrbid popularity is showing at the dealership.
Hybrids continue to outsell EVs in the US, with sales approaching 1.4 million vehicles this year, versus nearly 1.2 million full electrics, according to GlobalData, which sees hybrids controlling 9% of the American car market in 2023, while full-electrics command 8%.
Toyota is also doubling down on hybrid investment, something that has angered environmentalists who aren’t satisfied with the company’s lack of EV offerings. GlobalData says Toyota’s hybrid sales are expected to be over 600,000 in 2023, a 7.5 percent increase over 2022. As Jack Hollis, Toyota’s U.S. sales chief pointed out, the company is seeing growth in both hybrid and plug-in hybrid sales.
“The Sienna has a waiting list of at least eight months, and Toyota would sell more hybrids as a percentage of its total—especially plug-in models—if it had more powertrains available, says Jack Hollis, Toyota’s US sales chief. “If you look at plug-in hybrids, it’s really growing fast,” he says. “We could easily double our plug-in hybrid” sales.”
If something isn’t done to bring down the price of EVs and improve charging access, more and more buyers will be drawn to hybrids and PHEVs. Automakers may find themselves rethinking their investments in EVs.