Table of Contents Table of Contents The numbers Why are PHEVs growing so quick? The best/worst of both worlds Theres a lot of talk about the idea that the growth in electric car sales has kind of slowed a little. Its not all that surprising EVs are still expensive, early adopters all have one by now, and theyre still new enough to where there arent too many ultra-affordable used EVs available. But plenty of people still want a greener vehicle, and that has given rise to an explosion in hybrid vehicle sales.
Thats especially true of plug-in hybrid vehicles, which can be charged like an EV and driven in all-electric mode for short distances, and have a gas engine as a backup for longer distances or to be used in combination with electric mode for more efficient driving.
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Its important to get one thing out of the way EVs are still on the rise. Its just that their sales arentgrowing as quickly as they were. Theyre still becoming better, more widely available, and cheaper. And, theyre still likely the future of personal transportation, no matter what the hydrogen fans might have you believe. As of the third quarter of 2024, global sales of EVs grew 3.9% year-over-year, according to TrendForce.
But plug-in hybrids have been gaining a lot of steam too. The same report from TrendForce notes that sales of plug-in hybrids grew 55.3% over the same period. Thats pretty huge.
Essentially, plug-in hybrid electric vehicles (PHEVs) are growing faster than full-on battery electric vehicles (BEVs) though sales of PHEVs still arent at the same level of BEVs. According to that report, BEV sales in the third quarter of 2024 totaled 2.509 million, while plug-in hybrid sales totaled 1.612 million. At this pace of growth, however, theres no reason to think that PHEVs wont overtake BEVs at some point.
Thereasons for the explosion in growth of PHEVs are less clear than the fact that theyre growing. Thats not to say there arent good reasons to buy a PHEV over a BEV on the contrary, in many situations, PHEVs are a much better choice. But at least some of the growth could be due to customer confusion about the state of electric vehicles.
Hybrid sales are growing due to general consumer confusion about electric vehicles, like charging infrastructure and tax credits. This uncertainty makes hybrids a simpler, less intimidating option for buyers, offering many of the same environmental benefits without the unknowns, said David Boice, co-founder and CEO at Team Velocity, which helps automotive companies digitize the carbuying and ownership experience, in an interview with Digital Trends.
Clear messaging about EVs is critical to address consumer concerns and encourage the shift. Until then, hybrids will remain a key step in the journey toward a fully electric future, said Boice.
Of course, not all of the sales of PHEVs are down to customers being intimidated by the switch to all-electric and it would be a little condescending to think that they were. Plenty of customers know full well what owning an EV would be like, but find that charging still isnt where it needs to be for it to work for them. Thats especially true for those who cant charge at home and who would need to rely on public charging stations.
Consumers want the benefits of electric without the drawbacks. A buyer might not be ready to go full charging station, but a boost in fuel efficiency is always welcome, said Jon Vorisek, founder at Repair Surge, which provides online vehicle repair information.
Not everything is customer-driven, though. Part of the surge in plug-in hybrids also likely has to do with the need for manufacturers to meet fuel efficiency restrictions, according to Vorisek.
If you are a carbuyer curious about PHEVs, then its worth knowing that while they can represent the best of both gas-powered and BEVs, they can also represent the worst of them.
Its really only worth considering a PHEV if you can charge somewhere that you regularly park for extended periods of time. For most people, that will be their home, but for others, it might be their workplace. Thats because PHEVs usually have an electric range of between 25 and 50 miles, which isnt all that much. The result is that if you want to use them in all-electric mode frequently, youll need to charge them often.
If you can charge at home, however, you might find that PHEVs work effectively like BEVs in your day-to-day use, at least in terms of efficiency. That really is a best-case scenario for PHEV ownership allowing drivers to use their vehicle in all-electric mode in most day-to-day driving, and then switch to a hybrid mode for longer distances as needed, with the added convenience of being able to refuel at a gas station. That said, if you can charge at home, then theres one less reason not to buy a BEV as youll be able to keep your vehicle charged up all the time, without having to worry about going to public charging stations. Thats the best of both worlds the efficiency and lower cost of an electric powertrain, with the convenience of gas station refueling.
But as mentioned, they also represent the worst of both worlds. PHEVs have to be recharged, which isnt very convenient if you cant do it at home, and if you dont recharge frequently, your vehicle will be just as bad for environment as any gas-powered vehicle. Plenty of PHEV owners simply end up forgetting to recharge their vehicle, and relying completely on the gas engine.
Of course, in the long term, no matter how much hybrid vehicles sell in the next few years, were still likely headed toward full electrification. In fact, plenty of PHEV owners graduate to full electric after getting used to charging their vehicles frequently. When they do so, they discover the benefits of all-electric vehicles, like the longer range and better performance.
Basically, plug-in hybrids will likely continue to gain popularity over the next few years, then start to drop off as BEVs become cheaper and charging becomes more convenient.
Hybrid vehicles are a convenient middle ground for buyers who arent ready for a fully electric vehicle, but the end state is probably a fully electric fleet. Its just a matter of time, said Vorisek.
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