High electric vehicle (EV) prices and concerns over charging infrastructure have tempered consumer enthusiasm for EVs. Consequently, consumers transitioning from gasoline cars increasingly favor hybrids – the combination of gasoline and electric power. Hybrid sales, including plug-ins, have surged in the last five years. In 2023, Americans bought a record 1.2 million EVs, up 46% annually, while hybrid sales surged 65%. After including plug-ins, hybrids represented about 10% of all new car purchases in the U.S., outpacing pure electric vehicles with a 7.6% market share.
Moreover, as the Biden administration refines its plans for auto emissions standards to reduce the carbon impact of passenger vehicles, makers of plug-in hybrids and regular gas-electric hybrids are expected to benefit.
