Hybrid cars are the big winners this year

Hybrid vehicles are the "goldilocks" choice for American car buyers — offering a middle ground between the benefits of EVs and battery range issues.

By the numbers:

• Non-plug-in hybrids reached a record 10.8% of U.S. vehicle sales in Q3, solidifying their spot in the mainstream, reports the EIA.

• EY says 21% of U.S. buyers are considering hybrids for their next vehicle — preferring hybrids for their practicality and easier adoption than EVs.

The reasons: For many, hybrids are an “easy yes” in a market full of uncertainty. Hybrids don't rely solely on charging stations or long waits to "fuel up" — yet still benefit from better fuel economy. And with EVs still commanding higher price tags, hybrids are often a more budget-friendly entry point.

What they're saying: “With many still hesitant to go all in with EVs, hybrids offer an ‘easier-to-swallow’ solution: the security of ICE with the advancements of EV technology and performance. For those who are looking to transition due to the environment, hybrids allow owners to lessen their reliance on fuel and creates options for batteries and parts. For many, it’s a win-win," said Raman Ram, EY Americas Aerospace, Defense and Mobility Leader.

Zooming out: It's not just consumers embracing hybrids. Manufacturers are doubling down and adjusting their strategies to meet the demand.

• Toyota: During the nine-month period through December, Toyota had its biggest hybrid growth in North America. Sales volume climbed 17% over the same period a year earlier.

• Ford: In a major shift, Ford plans to quadruple hybrid sales by 2028, rolling back some EV plans to focus on affordability.

• GM: After pushback from dealers, GM will introduce plug-in hybrids in North America.

• Honda: The upcoming Honda Prelude, set to launch in late 2024, will showcase a new hybrid powertrain as part of Honda’s goal to double hybrid sales by 2030.

• Subaru: The Forester Hybrid's timeline was accelerated to mid-2025, highlighting the urgency for hybrids.

Hidden advantage: Hybrids aren’t just selling well — they’re helping dealerships steal customers from rival brands.

• A study by S&P Global Mobility found that 14 of 19 hybrid models analyzed had higher conquest rates than their gas-powered counterparts.

• For 10 of those models, the gap was significant — over 10% higher — making hybrids a powerful tool for dealerships to win new buyers.

The debate grows: Some critics see hybrids as a compromise that doesn't go far enough. Because they still rely on gasoline, hybrids only partially address the need to cut emissions and reduce dependence on fossil fuels.

• A 2024 white paper from Recurrent emphasizes that fully battery-electric vehicles (BEVs) remain the most effective solution for minimizing environmental impact.

• But defenders say hybrids make sense as a transitional step. They’re more affordable, less intimidating for first-time adopters, and help manufacturers refine EV technology while EV infrastructure catches up.

Bottom line: Whether hybrids are a bridge to EVs or not, they are certainly enticing to consumers and automakers in today's car market.

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