- Not enough range and high prices may be keeping American buyers away from plug-in hybrid vehicles.
- More buyers are choosing regular non-plug-in hybrids or are going completely electric.
- PHEVs are more popular in Europe, but it’s pretty much the same story with a lot higher hybrid and EV sales.
Plug-in hybrid vehicles seem like a great halfway solution between combustion and electric vehicles—a stepping stone from one to the other. They offer a lot more range than standard non-plug-in hybrids, more performance when running in electric mode, and their ability to recharge their battery from an external source allows owners who plan ahead to hardly ever have to power on the vehicles’ combustion engine.
However, buyers don’t seem to be rushing to buy them. And a new J.D. Power study quoted by Automotive News tries to explain why. It found that owners were less satisfied with their PHEVs than people who owned fully electric vehicles.
According to Brent Gruber, the Managing Director of the Electric Vehicle Experience at J.D. Power, “There’s been a lot of focus on creating intermediary steps for consumers who may not be ready to fully adopt a battery-electric vehicle yet,” but the situation “really isn’t favorable in comparison to battery-electric vehicles.”
Mazda CX-90 PHEV
He concluded that “plug-in hybrids have their merits for certain people, but when you look at that ownership experience, it’s certainly not as positive as battery-electric vehicle ownership experiences.”
The main reason PHEV owners are not as satisfied as they could have been is the vehicles’ relatively low electric range. It’s just about 25 miles on average (although there are PHEVs that go further than that, some as much as an early EV). Just 1.9% of all new car sales in August were PHEVs, compared to 9.4% BEVs and 10.7% hybrids.
Price is another big factor keeping car buyers away from PHEVs. J.D. Power data found that the average transaction price for a new compact crossover with a plug-in hybrid powertrain was $48,700 versus $37,700 for one with non-plug-in hybrid power and $36,900 for an EV in the same category.
Buyers are still not well informed about what PHEVs and their potential advantages are, and many owners aren’t using them properly, driving them like regular hybrids that don’t need to be plugged. There also seems to be a lot of skepticism regarding PHEVs in the U.S., and the vast majority of electrified vehicle buyers get a non-plug-in hybrid. Or they take the plunge into the unknown and go for a full EV.
Portraying the PHEV as the transitional vehicle designed to ween modern motorists off gasoline and ease them into a sort of EV experience lite with a gas engine safety net hasn’t struck a chord with Americans—they provide a less satisfying ownership experience. European buyers seem to have resonated more with this narrative, with over 7% of new cars registered so far this year in the European Union being PHEVs, although that’s still a lot less than the 31.3% market share owned by regular hybrids and even less than diesels, according to ACEA.
Plug-In Hybrids Are Here. But Buyers Aren’t Yet Convinced
In recent years, plug-in hybrid vehicles have become increasingly popular in the automotive market as a more eco-friendly alternative to traditional gasoline-powered cars. These vehicles combine a conventional internal combustion engine with an electric motor and battery, allowing them to run on both gasoline and electricity. While plug-in hybrids offer the benefits of reduced emissions and lower fuel costs, buyers have been slow to embrace this technology due to a number of factors.
One of the main reasons why buyers may be hesitant to invest in a plug-in hybrid is the upfront cost. Plug-in hybrids tend to be more expensive than their gasoline counterparts, largely due to the added cost of the electric motor and battery. While tax incentives and rebates are available for plug-in hybrid purchases, these incentives may not be enough to offset the higher initial purchase price for some buyers. Additionally, concerns about the long-term reliability and durability of the battery technology in plug-in hybrids may also be a deterrent for potential buyers.
Another factor that may be contributing to the slow adoption of plug-in hybrids is the lack of infrastructure to support these vehicles. While electric vehicle charging stations are becoming more common, they are still not as widespread as gasoline stations, making it more challenging for plug-in hybrid owners to find convenient places to charge their vehicles. Range anxiety, or the fear of running out of electric power before reaching a charging station, may also be a concern for buyers considering a plug-in hybrid.
Despite these challenges, there are several reasons why buyers should consider making the switch to a plug-in hybrid. In addition to the environmental benefits of reduced emissions and lower fuel consumption, plug-in hybrids offer drivers the flexibility to switch between gasoline and electricity based on their driving needs. This can result in significant savings on fuel costs over time, as well as a smoother and quieter driving experience compared to traditional gasoline vehicles.
As automakers continue to invest in the development of plug-in hybrid technology and expand their offerings in this segment, buyers may become more convinced of the benefits of these vehicles. In the meantime, automakers and policymakers can work together to address some of the barriers to adoption, such as developing more robust charging infrastructure and offering additional incentives for plug-in hybrid purchases. With these efforts, plug-in hybrids may soon become a more popular choice for environmentally conscious buyers looking to reduce their carbon footprint and save money on fuel costs.