In the spotlight again after years of dominance by glamorous electric vehicles such as Tesla, hybrid cars – those with both an engine and an electric motor – are attracting attention once more.
According to data from automotive consultancy firm Edmunds, electric car sales in the United States have slowed down, with the average time a car spends on a dealer’s lot increasing from 25 days at the beginning of 2023 to 72 days in 2024. This indicator, known as “days to turn,” is a good measure of a product’s popularity.
The days to turn for electric cars surged nearly threefold, a stark contrast to the sales performance of other vehicle types. Data from Edmunds shows that conventional gasoline cars had a days to turn of 34 in 2023, increasing to 52 in 2024.
However, hybrid cars have outperformed other vehicle types in terms of popularity – their days to turn is swift; increasing from 16 days in 2023 to 25 days in 2024.
According to Morgan Stanley data, sales of hybrid cars in February 2024 were five times that of electric car sales.
When the Toyota Prius, a hybrid car, made its debut in the U.S. market in 2000, it became a favorite among Hollywood stars and ordinary consumers looking to save on fuel costs. Not flashy or luxurious, its popularity was surprising.
However, soon after, Tesla sparked an electric car craze with its stylish and fast Roadster and Model S, pushing hybrid cars to the sidelines. Almost all major automakers scrambled to follow suit, seeking not to fall behind in the electric car revolution – with the exception of Toyota. To date, the world’s largest automaker, Toyota (which owns Lexus), only sells two electric cars – bZ4X and Lexus RZ – both with modest sales figures.
Proponents of electric cars and environmental organizations have criticized Toyota for not keeping up with the electric car revolution, lobbying to slow down the electrification trend. While Toyota has attempted electric vehicle production in the past with models like the RAV EV, it has long believed that the journey to full electrification is lengthy and that most consumers are not yet ready for widespread electrification.
However, at the end of 2021, Toyota announced plans to release 30 electric car models by 2030, with a target annual sales of 3.5 million units.
Approximately two years later, sales of hybrid and plug-in hybrid cars increased by almost 28% from the previous year. They constitute 30% of Toyota’s investment portfolio.
Toyota is not the only company profiting from hybrid cars.
Hyundai may expand hybrid car production at a planned factory in Georgia, initially intended for electric vehicles only. Ford announced plans to reduce production of some electric car models, including the F-150 Lightning electric pickup, in favor of more hybrid cars. General Motors CEO Mary Barra, a long-time advocate of the company’s belief in the “all-electric future,” recently announced the company’s reintroduction of plug-in hybrid cars in North America.
The International Council on Clean Transportation released a white paper in 2021 stating that hybrid cars, as they burn fossil fuels, are less effective in reducing greenhouse gas emissions than electric cars.
Some argue that certain vehicle models, especially plug-in hybrids, may have more severe pollution than anticipated and may not be favorable for owners due to high prices, limited choices, high fuel, and maintenance costs.
Supporters of hybrid cars point out that, compared to electric cars, hybrids offer a better short-term solution for reducing greenhouse gas emissions.
Sources: CNBC