[RahulNagaraj]

According to a media report, car buyers in the USA prefer purchasing hybrids instead of full-electric vehicles. The main reason for this is attributed to the cost of EVs and the bad charging infrastructure currently in place.

Reports also mention data from an analytic firm, GlobalData, which shows that Hybrid sales in the USA have doubled since 2020. The firm's Automotive Executive VP, Jeff Schuster also pointed out that "shift to EVs won't happen overnight. Hybrids are a bridge to electrification."



The report also mentions how companies like Ford, who have invested billions in EVs are realising this now and have planned to introduce more hybrid options in their lineup over the next five years. Jim Farley, CEO, Ford, even stated, "We have been surprised, frankly, at the popularity of hybrids." He even went on to mention how the Maverick Hybrid sales accounted for 60% of the total model's sales.

Global Data also suggests Toyota's hybrid sales in 2023 are expected to be over 600,000 units - a 7.5% rise compared to 2022.

The analytics firm also showed data on how hybrid sales in the USA are approaching 1.4 million vehicles this year, compared to 1.2 million EVs. They also stated that Hybrids control 9% of the American car market, with EVs trailing at 8%.

Source: Bloomberg

Link to Team-BHP news

[sri_tesla]

Originally Posted by RahulNagaraj

According to a media report, car buyers in the USA prefer purchasing hybrids instead of full-electric vehicles. The main reason for this is attributed to the cost of EVs and the bad charging infrastructure currently in place.

Reports also mention data from an analytic firm, GlobalData, which shows that Hybrid sales in the USA have doubled since 2020. The firm's Automotive Executive VP, Jeff Schuster also pointed out that "shift to EVs won't happen overnight. Hybrids are a bridge to electrification."

Are people really buying hybrids instead of full-electric vehicles or is it just wishful thinking of some random analytic firm's wishful thinking? If people are really buying hybrids over full-electric vehicles, then why are full-electric sales growing much faster than hybrids? This firm says hybrid sales have doubled since 2020 but full-electric sales have doubled in just 2 years (2023 vs 2021). This is despite much fewer options for full-electric vehicles compared to hybrids.

The report also mentions how companies like Ford, who have invested billions in EVs are realising this now and have planned to introduce more hybrid options in their lineup over the next five years. Jim Farley, CEO, Ford, even stated, "We have been surprised, frankly, at the popularity of hybrids." He even went on to mention how the Maverick Hybrid sales accounted for 60% of the total model's sales.

Global Data also suggests Toyota's hybrid sales in 2023 are expected to be over 600,000 units - a 7.5% rise compared to 2022.

As per the official website, Ford gives the hybrid option for just $1,500 more even in the base trim of the Maverick. Hybrid is rated at almost 50% higher mileage (37mpg vs 25 mpg). That is a huge advantage for just a 6.5% higher starting price. If anything the Maveric example shows that most people are opting for hybrid options over ICE-only variants if there is an option. There is not even a comparable full-electric option to choose from over these hybrids yet, so the comparison is invalid and silly. Whichever segments have a full-electric option, those models have a much higher market share than the overall market share.

The analytics firm also showed data on how hybrid sales in the USA are approaching 1.4 million vehicles this year, compared to 1.2 million EVs. They also stated that Hybrids control 9% of the American car market, with EVs trailing at 8%.

Again, as mentioned above despite the huge number of hybrid options at much lower prices and very limited full-electric options, EVs garnered almost the same market share.

Latest BEV (full-electric) market share in the USA:
BMW = 15.6% (+202% YoY)
Mercedes = 15.4% (+509% YoY)
Audi = 12.7% (+93% YoY)
VW = 12.2% (+61% YoY)
Hyundai = 8.2% (+331% YoY)
Ford = 4.9% (+60% YoY)

The market share is much higher for brands with decent full-electric options as shown below (USA) despite higher prices compared to ICE vehicles.

[ferrarirules]

Originally Posted by RahulNagaraj

The analytics firm also showed data on how hybrid sales in the USA are approaching 1.4 million vehicles this year, compared to 1.2 million EVs. They also stated that Hybrids control 9% of the American car market, with EVs trailing at 8%.

The data could also have been present in the following way - Hybrid's took 25 years to reach 9% market share where as EVs have raked 8% market share in last 10 years with major models being launched only in last 5-7 years.

According to me, hybrids are eating into non hybrid ICE car market share like BEVs which means 5 years down the line, we might not have many pure ICE cars.

[Contrapunto]

Originally Posted by ferrarirules

According to me, hybrids are eating into non hybrid ICE car market share like BEVs which means 5 years down the line, we might not have many pure ICE cars.

I do think you are correct on both counts. Incremental purchase will be either Hybrid (for mainstream customers) or increasingly EVs.

Charging infra will rapidly improve, but it is fair to say that for a large majority of people, a car is their 2nd most expensive purchase (after a house)- so it is logical that they will go for a safer choice.

On another note, Toyota may have read the market right, once again. I hope this gives them cashflow and a little breathing room to get their EV strategy right. Tesla and BYD is slowly turning this EV market into a duopoly

[bettertwitter]

The two charts show how Hybrids are only waking up after a long downturn in the US in the mid-2010s. I think oil prices have something to do with this - as petrol prices in the US increase, hybrid tech's value proposition improves. I think folks buying Hybrid are likely not comfortable with range and charging network for EVs just yet. These issues should resolve themselves over this decade and anyway car companies too are expected to introduce fewer and fewer new hybrid models as IC engines too will be mostly phased-out.

[volkman10]

Morgan Stanley raises outlook on Toyota due to hybrid cars strength.

Morgan Stanley acknowledged a shift in its perspective on Toyota's hybrid vehicles. The firm had previously anticipated a decline in the hybrid market due to evolving regulations, the rise of electric vehicles (EVs), and changing consumer preferences. Contrary to these expectations, hybrids have demonstrated resilience and are now considered by the firm as a key transitional technology shaping the automotive industry in 2024.

The statement released by Morgan Stanley highlighted a misjudgment regarding the trajectory of hybrid vehicles from 2019 to 2021. The firm had predicted that hybrid cars would falter as the automotive sector moved towards greater EV adoption. However, this forecast proved inaccurate as hybrids continue to play a significant role in the market.

Morgan Stanley's revised outlook on Toyota reflects the automaker's success in leveraging hybrid technology. The firm now recognizes hybrids as a critical factor in determining market share winners and losers this year.

This acknowledgement marks a notable shift from the previous stance that underestimated the staying power of hybrid vehicles. The firm's updated view underscores the importance of hybrids in the current transition phase towards more sustainable vehicle options.

Link:

[volkman10]

Ford prioritizes hybrids over EVs.

Link: (Focused Ford plans 9 electric cars based on 2 EV platforms)

[volkman10]

Why hybrids gain momentum in the USA, while EV sales cool down.




Link: