(NewsNation) — While demand for electric vehicles has slowed, hybrids are becoming more popular, a sign Americans are looking for a compromise between gas-powered and fully electric vehicles.
Over the past year, hybrid market share has nearly doubled, increasing from 4.9% in 2022 to 9.7% in 2023, a 99% growth, according to Edmunds. Over that same period, the EV market share grew by just 25%.
The trend has continued in 2024. Last month, U.S. sales of hybrids grew five times faster than EV sales, Reuters reported, citing Morgan Stanley.
Hybrids, which combine an internal combustion engine with a battery-powered electric motor, tend to get better gas mileage than their nonhybrid counterparts but don’t have the range limitations that many fear with fully electric vehicles.
In other words, hybrids provide many of the eco-friendly advantages without the hassles of EVs, which are still more expensive than other vehicles.
Car dealers say the buzz around EVs, which continue to make headlines, has helped fuel hybrid interest.
“I think there is a halo effect from EVs,” Doug Eroh, president of Longo Toyota in El Monte, California, told the Wall Street Journal.
For some who are considering EVs, hybrids offer a comfortable alternative.
“They look at it as a baby step into the EV world,” Brad Sowers, owner of Jim Butler Kia and other St. Louis-area dealerships, recently told the Associated Press. “They’re saying to themselves, ‘I can’t really do 100% battery psychologically.’”
Automakers have responded by offering more options. The number of hybrid models on sale in the U.S. grew 40% over five years, to about 70 for the 2024 model year, according to Cox Automotive estimates cited by WSJ.
By 2025, North American production of hybrids could rise to as much as 20% of total light-vehicle production, compared with 14% for EVs, according to data provided to Reuters by AutoForecast Solutions.
The resurgence of hybrids comes as major U.S. carmakers, including General Motors and Ford, have scaled back their EV ambitions.
Despite a record-breaking year for U.S. EV sales, enthusiasm has slowed and remains heavily concentrated in urban areas, particularly on the West Coast, where weather is warmer and chargers are easier to come by.
In colder climates, where EV batteries don’t perform as well, adoption has been slower.
According to its 2023 reliability survey, Consumer Reports found that hybrids were the industry’s most reliable type of power system, while electric vehicles had significantly more problems than conventional cars. Part of that is because hybrids aren’t typically loaded with high-tech features that can be more problem-prone.
Hybrids have also been around for more than two decades, which means automakers have had more time to address and refine issues.
An owner of a 2024 Honda Accord Hybrid that drives 15,000 miles can expect to save $550 a year compared to the gas model, according to the Environmental Protection Agency. However, the hybrid buyer typically pays a higher sticker price.
