EV sales are falling behind in a market that seemed to be very friendly to them.
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Toyota
As per a report by the Automotive News Europe, sales of plug-in hybrids are growing faster than those of battery-electric vehicles such as those by American automaker Tesla (TSLA) .
According to figures released on March 21 by the European Automobile Manufacturers Association (ACEA), sales of plug-in hybrids rose 12% to 72,376 units across the industry in February 2024, compared to February 2023, while sales of battery-electric vehicles rose by 10.3% over the same period.
Though data from market analyst Dataforce showed that sales of plug-ins and BEVs grew at the same rate, ACEA data shows that the EV alternatives outpaced the overall EU auto market.
According to AutoNews, Europeans are flocking to premium brands for their plug-in hybrid fix. The top three bestsellers include Volvo's XC60 crossover, Porsche's Cayenne SUV and the GLC crossover from Mercedes-Benz, all of which account for roughly 11,000 units alone.
Volvo Cars' Chief Commercial officer Bjorn Annwall said that it is giving more "love and care" to hybrids and plug-in hybrid models like the bestselling XC60, noting that its vehicles act as the gateway towards zero-emissions driving.
"We see many consumers who take plug-in hybrid as the first step into full electrification, and the next car they buy is a fully electric car," Annwall told AN.
Plug-ins have made so much of an impact on Europe, it is waking up key rivals to establishment brands. Tesla-beating Chinese automaker BYD (BYDDY) recently announced that it would be launching a plug-in version of the Seal crossover SUV – its only gas offering in Europe.
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The data from across the pond regarding plug-in hybrids and EVs is reflective of the attitudes of auto buyers stateside, as the EV curious have been turning to the more efficient gas burners because of concerns like range anxiety.
Toyota (TM) credits the sale of hybrids and plug-in hybrids for its 17% sales growth in North America, while General Motors CEO Mary Barra revealed that the Big Three automaker will be incorporating plug-ins as part of its future strategy.
“Let me be clear, GM remains committed to eliminating tailpipe emissions from our light-duty vehicles by 2035, but, in the interim, deploying plug-in technology in strategic segments will deliver some of the environment or environmental benefits of EVs as the nation continues to build this charging infrastructure,” Barra said.
Recently, the Environmental Protection Agency released looser regulations regarding tailpipe emissions, requiring the auto industry to sell at least 56% EVs within the total number of all new auto sales by 2032, down from two-thirds of total new auto sales.
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