Hybrids drive higher conquest rates in the auto market

According to a study by S&P Global Mobility, hybrid vehicles apparently have a major benefit that many might not be aware of in the auto business – higher conquest buyers. 

Zeroing in: The report — which involved an analysis of 19 recently introduced hybrid or plug-in hybrid electric vehicle (PHEV) models ̶   reveals several interesting findings regarding conquest buyers and the hybrid vehicle segment.

• 14 of the 19 hybrids analyzed had higher conquest rates than their gasoline counterparts.

• 10 of the hybrid models had a conquest gap greater than 10% of that of their gasoline counterpart.

• Three models with the greatest conquest gap are in the compact utility segment, including a gap of 23.3% for the Hyundai Tucson, 21.9% for the Ford Escape, and 19% for the Kia Sportage. 

Winners: Market leaders Hyundai and Toyota have the most hybrids with significant conquest advantages. Six of the seven top-performing hybrid models belong to these automakers.

Between the lines: On the luxury side, the BMW XM and Audi Q5 E have some of the highest monthly loan payments in the hybrid market, making them a tough sell for budget-conscious buyers.

• And leasing isn’t any kinder. Upgrading from a gas-powered BMW X7 to the hybrid XM could mean a jaw-dropping 138% increase in monthly payments.

Digging deeper: The market share for plug-in and full hybrid vehicles jumped to 12.3% through the first eight months of 2024, up from 9.8% a year ago. And Loyalty among households that own a hybrid has also risen from 37% a year ago to 41.9% a year ago.

Final note: Hybrids are pulling in conquest buyers and boosting loyalty, proving their value as a strategic product offering for automakers and dealers. But to sustain momentum, they need to tackle the cost hurdle — especially in the luxury segment.

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