Yahoo Finance Electric Vehicles: Do Price Drops Mean Hybrids Are the Best Buy?
The electric vehicle (EV) revolution is well underway, with every major automaker slowly switching to electric models to compete with EV giant Tesla as well new companies like Bollinger, Fisker, Lucid and Rivian, who have been electric since start-up.
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However, as Tesla, Ford and General Motors (GM) continue to slash prices amid high unsold inventory and stiff competition, new and used electric vehicles still cost more than the average American can afford. The alternative for buyers could be going hybrid, which provides all the benefits of an EV without as big a financial burden.
That’s part of the thinking behind a recent opinion piece on MarketWatch, in which Todd G. Buchholz cameto the conclusion that in today’s auto marketplace, “The internal combustion engine is still in the lead.”
EVs are gaining market share points slowly but surely, with government regulations and incentives leading the charge. According to Kelley Blue Book, 2023 fourth quarter sales for EVs increased by 40% year-over-year. However, sales for EVs rose by just 1.3% in the last quarter, fueling speculation that the shine is starting to come off EVs.
Gas-electric hybrid sales, on the other hand, grew 54% to 1.2 million last year, with market share increasing from 5.6% in 2022 to 7.7%, slightly outdistancing EVs in the process, according to The Associated Press.
Additionally, hybrid market share increased to 9.7% in November 2023 from 4.9% the year prior — a 99% growth — per Edmunds data. Over that same time period, EVs increased just 25% in share.
According to CleanTechnica, both Ford and GM have underestimated eliminating hybrids from their model lines. Ford anticipates quadrupling hybrid sales within five years and its Maverick hybrid has become surprisingly popular. GM is questioning its decision to abandon most of its hybrids four years ago.
Toyota, the world’s bestselling automaker, posted strong numbers throughout 2023 as it continued to surf consumer skepticism and champion hybrid and plug-in hybrid vehicles. How long it can be a lone holdout is up for debate, but for now, its will give buyers the option of spending just a bit more for a reliable hybrid than they would a traditional car, rather than a lot more for an EV.
While significant discounts by Ford, GM and Tesla make electric models more accessible to a wider audience, consumers are still cautious of the up-front expense, lack of charging stations, range anxiety and other concerns associated with switching to electric.
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American drivers are devoted to their gas-powered vehicles and are justifiably reluctant to immediately embrace something they are unsure about. With hybrids brokering the transition between gasoline cars to EVs, expect more drivers to turn to this more comfortable choice for the majority of Americans seeking electric options.
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This article originally appeared on GOBankingRates.com: Electric Vehicles: Do Price Drops Mean Hybrids Are the Best Buy?
