Revolutionizing the Road: Cheaper Hybrids Lead the Charge in Record-Breaking Electrified Car Sales
Hybrid Cars Take the Lead as Americans Flock to Electrified Options
In a surprising twist, Americans are buying more hybrid cars than ever, according to the latest data from the U.S. Department of Energy. As the electrified market share hits a record 19.6 percent in Q3, it’s clear that hybrid vehicles are the driving force behind this trend. In fact, hybrid models accounted for 10.8 percent of sales in Q3, while battery-electric vehicles (BEVs) claimed a 7.0 percent share.
Hybrid Supremacy
The shift towards hybrid cars is significant, with 70 percent of BEV sales comprising luxury models, compared to only 10 percent of hybrid sales. Clearly, buyers are loving the expanded range of hybrid options from nearly every automaker’s lineup. The Toyota Corolla Hybrid, with its starting price of $24,760, is currently the cheapest hybrid on the market, making it a compelling choice for those seeking an affordable electrified ride.
EV Slowdown
The EV sales slowdown is no surprise, as the initial excitement, novelty, and discounts have worn off. Manufacturing costs, overproduction, and unreliable EV charging have become the new reality. In addition, hybrids are simply cheaper, with an average transaction price (ATP) of $56,351 in September, compared to the industry-wide average of $48,397.
Industry Adjustments
As automakers scramble to adjust to the EV over-supply and under-demand, Ford has halted F-150 Lightning production and pivoted to hybrid models. Volkswagen Group is shifting its budget back to gas cars, while General Motors and Mercedes-Benz have changed their EV-right-now strategies to focus on the long game.
Luxury EV Hold
Despite the growing popularity of hybrids, luxury automakers still hold a significant piece of the EV pie. EV buyers with deep pockets control 35.8 percent of total luxury vehicle sales, and more than a third of all luxury models sold in the U.S. are electric. As EV charging access and infrastructure improvements take shape, and pricing stabilizes, it’s the internal combustion engine (ICE) powertrains that should worry about their inevitable niche new-car status.
Key Takeaways:
- Hybrid cars account for 10.8 percent of sales in Q3, while BEVs claim a 7.0 percent share.
- Luxury models make up 70 percent of BEV sales, compared to only 10 percent of hybrid sales.
- The Toyota Corolla Hybrid is the cheapest hybrid on the market, starting at $24,760.
- EV sales are slowing down due to manufacturing costs, overproduction, and unreliable EV charging.
- Automakers are adjusting their strategies to focus on hybrids and affordable electrified options.
