Why Hybrids Are Beating EVs In The U.S.
CNBC・12 minutes read
Hybrid cars were popular for fuel efficiency, but EVs like Tesla have taken the spotlight, leading to pressure on automakers to cater to consumer preferences. Despite challenges, plug-in hybrids could serve as a valuable transition option to electric vehicles, with California planning to allow 20% of new car sales to be plug-in hybrids by 2035.
Insights
- Environmental groups criticized the company that popularized hybrids for being slow to adopt EVs and lobbying against climate legislation, highlighting a shift in consumer and industry focus towards electric vehicles over traditional hybrids.
- Despite the rise of electric vehicles, there is a significant market for plug-in hybrids, with data suggesting they could serve as a valuable transition option towards full electric vehicles, especially for consumers unable to fully adopt battery technology. California's plan to allow 20% of new car sales to be plug-in hybrids after banning internal combustion engines by 2035 indicates a continued role for this technology in the automotive market.
Get key ideas from YouTube videos. It’s free
Recent questions
Why were hybrid cars initially popular in the US?
Hybrid cars were initially popular in the US due to their green image and exceptional fuel economy, especially during high gasoline prices. Consumers were drawn to the idea of reducing their carbon footprint while also saving money on fuel costs. The environmental benefits and cost savings associated with hybrids made them an attractive option for many Americans looking to make a more sustainable choice in their vehicle purchases.
What led to the rise of EVs over hybrids?
The rise of EVs over hybrids can be attributed to advancements in technology, increased range capabilities, and a growing focus on sustainability. Tesla's Model Y becoming a top-selling vehicle in California showcased the increasing popularity of electric vehicles. As EVs became more mainstream and affordable, consumers began to favor them over hybrids due to their zero-emission capabilities and lower long-term operating costs.
How are automakers responding to consumer preferences?
Automakers are responding to consumer preferences by increasing their focus on electric vehicles while still offering hybrid options. With hybrid sales outpacing EVs, automakers are realizing the need to cater to current consumer demands for more sustainable transportation options. Companies like Toyota and Ford are facing pressure to combat climate change and increase EV production, showcasing a shift towards more environmentally friendly vehicles in response to consumer preferences.
What challenges do EVs face in terms of infrastructure?
EVs face challenges in terms of infrastructure, particularly with public charging stations. The lack of a widespread charging infrastructure deters many potential buyers from making the switch to electric vehicles. Without easy access to charging stations, consumers may be hesitant to invest in an EV due to concerns about range anxiety and the inconvenience of finding a place to charge their vehicle. Addressing this infrastructure hurdle is crucial for the continued adoption and success of electric vehicles in the market.
What is the future outlook for global EV production?
The future outlook for global EV production is promising, with expectations for production to double by 2031. This indicates a significant shift towards electric vehicles in the automotive market as more consumers embrace sustainable transportation options. As countries and automakers commit to reducing emissions and combating climate change, the demand for EVs is expected to continue to grow, driving further innovation and investment in electric vehicle technology.
Related videos
CNBC
Who Is Winning The Global EV Race?
CNBC
Why EV Sales Are Falling | CNBC Marathon
CNBC
Why So Many EV Companies Fail
Forbes
Green Hydrogen Could Power Your Life Sooner Than You Realize - These Companies Are Making It Happen
CNBC
How Norway Built An EV Utopia While The U.S. Is Struggling To Go Electric | CNBC Documentary
Summary
00:00
Hybrids vs EVs: Automotive Market Trends
- Hybrid cars were initially popular in the US due to their green image and exceptional fuel economy, especially during high gasoline prices.
- EVs have now overshadowed hybrids, with Tesla's Model Y becoming a top-selling vehicle in California.
- Environmental groups criticized the company that popularized hybrids for being slow to adopt EVs and lobbying against climate legislation.
- Hybrid sales are outpacing EVs, with automakers realizing the need to cater to current consumer preferences.
- Toyota, a pioneer in hybrids, faced shareholder pressure to combat climate change and increase EV production.
- Ford, a key player in EV sales, saw success with its Mustang Mach E and F-150 Lightning, but hybrids still outsold them.
- General Motors reintroduced plug-in hybrids to its lineup, recognizing consumer demand and infrastructure limitations.
- Automakers are under pressure to meet stringent fuel economy standards, with EVs and hybrids offering a balance between efficiency and affordability.
- Public charging infrastructure remains a hurdle for EV adoption, with many potential buyers deterred by the lack of charging stations.
- Despite challenges, global EV production is expected to double by 2031, indicating a significant shift towards electric vehicles in the automotive market.
12:43
Plug-in hybrids: A transition to electric vehicles
- Fuel consumption for plug-in hybrids may increase by 42% to 67%, with plug-in hybrid owners charging their vehicles about five times a week on average and using 70% of the electric range per day. J.D. Power found this data, indicating that plug-in hybrids could be a valuable transition option towards electric vehicles, especially for the market segment unable to fully adopt battery technology. California plans to allow 20% of new car sales to be plug-in hybrids after banning internal combustion engines by 2035, suggesting a continued role for plug-in hybrids in the market.
