Hybrids are pulling more buyers away from gas-powered cars

An annual survey by Deloitte reveals that hybrid vehicles are continuing to gain traction in the U.S. market, paving the way for more competition for conquest buyers in the growing segment. 

First things first:  The findings – revealed in the Deloitte 2025 Global Automotive Consumer Study – found that while ICE vehicles are still the preferred choice among many buyers, hybrid vehicles are growing rapidly in popularity.

• Intent to purchase hybrid vehicles (HEV/PHEV) in the U.S. is up year-over-year to 26%. 

• The appeal of all-electric vehicles remains relatively flat in the U.S. in 2024 at 5%. 

• Interest in ICE vehicles in the U.S. is down to 62%.

When it comes to the barriers to EV adoption, the study also reveals that charging infrastructure might not be as big of a concern as many think. 79% of EV intenders plan to charge their electric vehicle most frequently at home. 

Between the lines: Deloitte also found that brand loyalty in the U.S. is waning, with a growing number of consumers in the market planning to opt for another brand the next time they purchase a vehicle.   

• 54% of those surveyed in the U.S. plan to switch brands for their next vehicle purchase, up 3%

• 47% of consumers in the U.S. indicate that they have no preference for one brand over another as long as the vehicle meets their needs.

• 58% of the respondents prioritize quality for their vehicle brand of choice, followed by price at 53% and performance at 51%.    

Between the lines: This opens the door for automakers to lure buyers away from competitors by focusing on quality, price, and performance — and many hybrid models tick those boxes.

But regardless of the vehicle brand – most consumers (86%) want to interact with the vehicle in person,  indicating that they need to test drive the vehicle to ensure that it’s the right fit.  

Bottom line: Given the growing popularity of hybrid vehicles, which are projected to account for 15% of vehicle sales in 2025, the PHEVs and HEVs sector is poised to become one of the most competitive battlegrounds for dealers and buyers.

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