Automakers bet on plug-in hybrids—but consumers aren’t convinced: study

The idea that plug-in hybrid electric vehicles (PHEVs) can ease the transition to fully electric vehicles may not be as effective as believed.

The study – part of J.D. Power’s E-Vision Intelligence Report – found that while many automakers are looking to pivot their EV strategies to plug-in hybrids to their lineup, car buyers aren’t sold on PHEVs.  

By the numbers: 

• Through August, PHEVs only accounted for 1.9% of total vehicle sales, compared to 9.4% for BEVs (Battery Electric Vehicles) and 10.7% of HEVs (Hybrid Electric Vehicles).

• The availability of different PHEV models (41), compared to HEVs (39) and BEV models (60), make the market share comparison that much more notable, when it comes to the appeal of the plug-in hybrids.

Where’s the disconnect? J.D. Power’s U.S. Electric Vehicle Experience (EVX) Ownership Study indicates that satisfaction among PHEVs is 669 (on a 1,000-point scale), compared to 716 for mass market BEVs and a 738 score for premium BEVs. 

The study identifies three major consumer hurdles with PHEVs: 

• Plug-in hybrid owners experience higher than expected ownership costs due to the vehicle's two different power sources, which both have their own maintenance requirements.

• J.D. Power’s average cost analysis of a compact SUV sold from January through August of 2024 was $48,700, which is 24% higher than the average “real-world transaction price” for a comparable BEV, which was $36,900. The average cost analysis for a comparable HEV was $37,700. 

• The design elements of PHEVs are not much different than their gas model counterparts, which makes it difficult to justify the premium price for the vehicle.  

Why it matters: Amid waning consumer interest in fully electric vehicles, more automakers are making significant investments into plug-in hybrid vehicles, from Audi to Volvo. Yet –  it seems clear at this point that a well-rounded product portfolio and flexible vehicle platform strategy is the best approach to navigating the changing market.

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