- Electric cars are far outselling plug-in hybrids and that’s not expected to change.
- The sudden resurgence of plug-in hybrids is expected to peak at 10% of the market.
- PHEV sales expected to decline as battery prices fall and EVs become cheaper
Plug-in hybrid vehicles are experiencing a sales revivalbut they are unlikely to outperform EV in the long term, predicts Bloomberg New Energy Finance.
Sales of plug-in hybrids have surged in recent years, fueled by popularity in China, and BNEF now expects them to reach a higher peak market share than previously estimated. However, that market share is likely to peak at 10% of the global vehicle market by 2030, after which BNEF predicts sales will decline as battery prices continue to fall and electric vehicles become more affordable.
Kia Sorento 2025 plug-in hybrid
United States, Plug-in hybrid car sales hit record high by 2023, according to the Department of Energy. With more than 250,000 vehicles sold, they represent about 20% of total plug-in vehicle salesBut under 2% of total new vehicle sales. Many plug-in hybrids lost the federal EV tax credit this year, and prices have generally been less favorable than hybrids in 2023, so there’s reason to wonder whether that growth will continue.
After ditching pioneering technology with the Chevrolet Volt, General Motors plans to reintroduction of plug-in hybrid vehicles to its U.S. lineup in response to what the automaker sees as declining electric vehicle sales. Toyota plans to increase the electric range of its plug-in hybrids to as much as 120 miles, which would comply with California’s stricter emissions standards requiring plug-in hybrids to have at least 50 miles of electric range starting with the 2026 model year.
Toyota Prius Prime 2023
According to BNEF, plug-in hybrids are now the most expensive powertrain option in the United States, while prices in China have fallen below those of conventional internal combustion vehicles over the past five years. That comes with improvements in electric range and charging speeds that make Chinese plug-in hybrids more useful as electric vehicles, the report said.
However, BNEF still questions whether plug-in hybrids are actually driven in electric mode. An analysis of existing research over the past decade found that 26% to 54% of the total miles driven by plug-in hybrids were in electric mode, with some of the largest studies, “involving millions of cars in China,” being in the high teens, according to BNEF. Multiple studies have shown that plug-in hybrids not plugged in regularly as assumed when calculating emissions performance ratings—something regulators must address.
