Plug-in hybrids are in a unique position right now. While the sales of battery electric vehicles have been steadily increasing over the past few years with policy and infrastructure support designed to favor them, consumers have recently shown that they’re interested in PHEVs, too.
For starters, PHEVs are a bridge between gas cars and BEVs. They have both, a gas engine and one or more electric motors powered by a small lithium-ion battery. The combination allows drivers to cover short distances, typically between 20-50 miles in EV mode only. When the battery depletes, you can either plug it back in or rely on the combustion engine, leaving not much scope for range anxiety.
This has led some to believe that PHEVs, and not fully electric cars, represent a more plausible electrified future—at least in the near term. However, research from BloombergNEF’s 2024 Electric Vehicle Outlook has some caveats about the rise of such hybrids. It explains how adoption rates are skewed due to high sales mostly outside the U.S., where high-quality options have lured buyers en masse. And it also says that for automakers, increasing their all-electric range is a critical challenge seen as key to wider adoption.
So are PHEVs back in vogue? Well, the answer is yes, but there’s a twist. They have become popular mainly in Europe and China, which together represented 90% of PHEV sales last year. In the U.S., they’re not exactly hot sellers.
In Europe, customers have several great PHEV options. The Volvo XC60, Ford Kuga, BMW X1, Porsche Cayenne and Peugeot 3008 were some of the best-selling models in the continent according to JATO Dynamics data (via Statista).
China is a different beast altogether. The country became the largest PHEV market in 2022 thanks to an influx of affordable models from BYD primarily. But many other brands like Li Auto and Geely are also fighting it out for a bigger share of the market.
According to car research firm Autovista24, five of the ten best-selling EVs in China in April 2024 also came in PHEV variants. The best-seller is the BYD Song, offered in both BEV and PHEV variants. BYD sold some 54,300 units of the Song in April 2024 alone. Its 18.3-kilowatt-hour battery allows 50 miles of zero-emissions range whereas the combined range is 671 miles.
Chinese customers are spoiled for choice with hot-selling options like the Aito A9, Denza D9 and BYD Qin Plug. This pushed plug-in hybrids to 30% of new passenger EV sales worldwide last year, slightly up from 2022 levels. In the US, they only hit 19% of all new EV sales in 2023. But that is also a record.
Stellantis sells more PHEVs than any other automaker. Its sales increased by 124% last year, thanks to models like the Dodge Hornet, Chrysler Pacifica Hybrid, Alfa Romeo Tonale, Jeep Wrangler 4xe and the Jeep Grand Cherokee 4xe.
Toyota relies on plug-in hybrids, but not that much. Although, its PHEV sales growth in the U.S. has outpaced BEV sales. In Q1 2024, Toyota’s PHEV sales were up 94%, whereas BEV sales were up 84% (Including Lexus models).
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