Hybrid car sales outpaced electric vehicles in key markets last year, indicating a slowdown in EV growth. MarkLines reports a 30% increase in hybrid sales across 14 countries, including China, Japan, and the U.S., reaching 4.21 million units. Electric vehicle and plug-in hybrid sales grew by 28% to 11.96 million units. Hybrids now comprise 7% of total sales, up from 5% in 2021.
Concerns over EV reliability, particularly in cold weather, and the slow progress in introducing affordable EVs hinder consumer adoption. Tesla’s electric cars averaged $44,500 last quarter, down 15% from the previous year due to price cuts. In contrast, Toyota offers hybrids spanning a wide price range, with the new Prius starting at 2.75 million yen. Honda and Nissan also provide various hybrid options.
Convenience is a factor too, as EVs require longer charging times compared to hybrids or traditional combustion engine vehicles. This leads to congestion at charging stations and longer wait times for drivers. As a result, more consumers are opting for hybrids or plug-in hybrids as a practical alternative to EVs.
Subsidies to incentivize EV sales are diminishing, with Germany and China ending their programs. This shift is prompting automakers to reassess their EV strategies. Ford, for instance, is postponing $12 billion in EV investments after a decline in EV sales and a surge in hybrid sales.
Japanese automakers, benefiting from their early entry into the hybrid market, are experiencing robust sales growth. Toyota’s hybrid sales reached a record 3.44 million units last year and are projected to exceed 5 million annually by 2025. Honda and Nissan are also expanding their hybrid offerings to capitalize on growing demand.
While hybrids remain dominant due to infrastructure limitations and electricity concerns, EV demand is expected to rise in the long term. GlobalData predicts a doubling of EV demand by 2026 and exceeding 50 million units by 2035, representing a majority of passenger vehicle demand.
Manufacturers are actively addressing EV weaknesses through research and development to drive adoption. This includes efforts to reduce weight and improve efficiency. Despite the current surge in hybrid sales, the trend is expected to evolve as EV technology advances and consumer preferences shift.
