New data out of the United States has confirmed that owners of combustion-powered vehicles are more likely to transition into a hybrid car than a battery-electric vehicle.
Data from S&P Global Mobility reveals that between January and October 2023, 8.3% of households owning a gasoline vehicle, acquired either a traditional hybrid or a plug-in hybrid when looking for a replacement. This figure reached as high as 9.9% in October, a 3.8% increase from October 2022.
By comparison, 5.7% of gasoline-powered vehicle owners transitioned to a battery-electric vehicle in October.
There are likely several factors at play here. Data from AutoCreditInsight by S&P Global Mobility and Transunion reveals that the average monthly payment of a new gas vehicle in the U.S. sits at $675 while this figure falls to $670 for a hybrid. The average plug-in hybrid is considerably pricier, with an average monthly payment of $798, and electric vehicles are the most expensive, with EV buyers paying on average $828 per month.
The Honda CR-V Hybrid is the most popular hybrid vehicle that traditional combustion-powered vehicle owners are wrapping into, followed by the Toyota RAV4 Hybrid and Honda Accord Hybrid. Interestingly, the Tesla Model Y is the most popular electrified vehicle for new car buyers, totaling 112,195 registrations from January to October. The Tesla Model 3 followed it with 60,417 registrations, but once the Model Y and Model 3 are removed from the equation, hardly any EVs appear on the list.
Read: IRS Confirms All EVs And PHEVs Eligible For $3,750 And $7,500 Tax Credit In 2024
Among the other popular hybrid models for gasoline-powered vehicle owners are the Jeep Wrangler 4xe PHEV, Ford F-Series, Toyota Highlander, Toyota Sienna, Ford Maverick, Hyundai Tucson, Toyota Corolla, Lexus RX, Toyota Tundra, and Kia Sportage.
“The automotive industry’s transformation to fully electric may not be as rapid as EV advocates are hoping, as US consumers increasingly opt for more sustainable and energy-efficient vehicles,” associate director for loyalty solutions and industry analysis for S&P Global Mobility Tom Libby said. “This consumer trend of taking a half-step by choosing a hybrid instead of moving directly to an EV may be a sign of tentativeness to fully embrace electricity as the means of propulsion.”
