Hybrids vs EVs: Why Hybrids Are Surging as EV Sales Slow

April 03, 2024

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by John Matarese (Scripps News) Electric vehicles have received all the hype in recent years, but now sales are slowing as hybrids appear to be en vogue. -- ... But as the spring 2024 car buying season begins, hybrids that use gas and electricity are now the hottest thing again. Car buyers may notice a subtle change at auto shows traveling the country this spring.

We found a team of Toyota spokespeople pushing the Prius up on stage – yes, the hybrid Prius, which made its U.S. debut two decades ago in 2001.

"This is the good old-fashioned hybrid," the show spokesman told the crowd. "You can see this is the Prius, the one that started it all."

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Other automakers are easing off the gas pedal on pure electric vehicles, with Mercedes delaying its plans to go all EV and Ford slowing production of the much-hyped F-150 Lightning.

And even Tesla has just announced that its first quarter 2024 sales were down 9% compared with the first quarter of 2023.

Auto Dealer Association marketing director Charlie Howard says hybrids remove what's called "range anxiety," a common concern that an EV will run low on power before you reach a charging station.

"A lot of folks are saying instead, 'Hey, the hybrid option works for me,'" he said. "Or maybe I don't have charging options at my home, and the hybrid offers that extended range."

Some hybrids, like the Toyota Camry, get 48 miles per gallon, according to the EPA.

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iSeeCars.com analyst Karl Brauer says lower EV prices may not be enough to sway consumers, with hybrid prices lower and more in line with gas-powered cars.

"Hybrids get substantially better fuel efficiency than a non-hybrid vehicle," he said, "unless they're a plug-in, which means they get no fuel use for at least 30 to 50 miles." READ MORE; includes VIDEO

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Excerpt from The Drive: The changes come as Mercedes reportedly admits that it was overly ambitious with its electrification goals. This has become a common refrain among automakers that are walking back plans to replace ICE models with EVs. Automakers in the U.S. are encountering electrification setbacks that run the gamut from a lack of EV charging infrastructure, to low demand for EVs among buyers. Some of the blame can be placed on the automakers themselves, as in the case of GM, which bungled the release of its massively popular Bolt EV with a string of high-profile recalls. The Chevy Bolt was plagued by faulty battery packs from LG Electronics that ultimately cost GM and its EV partner $1.9 billion.

As more automakers begin to realize that transitioning to EVs is going to be harder than putting out a press release, Big Auto is collectively shrugging its shoulders and revising the timelines that were proposed at the start of the decade. Just three years ago, executives from M-B parent company, Daimler, told Automobilwoche the automaker was “switching from EV first to EV only.” The brass went on to say that every model in the lineup would have a fully electric version, and that Mercedes would switch to a “business without diesel and gasoline engines” by the end of the decade, as Automotive News reports.

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The plans seemed ambitious even then, but, hey, everyone was doing it: Opel said it would go fully-electric by 2028; Jaguar by 2025; Volvo and Bentley by 2030; even Ford said it would only sell EVs in Europe by 2030.

Daimler and M-B gave themselves a timeline of nine years to “largely eliminate internal combustion engines,” per AN. Maybe that seemed viable back then, but, in 2024, Mercedes is largely investing in the development of “high-tech combustion technology,” as Motor1 cites the CEO of the German automaker. Hmm. It sounds redundant to say that high-technology combustion technology is the goal, but CEO Ola Källenius was likely referring to engines that must conform to stricter emissions standards around the world.

Mercedes says that becoming carbon neutral by 2040 is still its objective, but it is now investing €14 billion (or $15 billion at current exchange rates) into its passenger car division to meet it. Some of the money will fund advancements of M-B’s electrification (hybrids) and digitalization strategies, but “more money than previously planned” will fund the development of new combustion engines, like those in the upcoming S-Class. The company is also dialing in current combustion engine and transmission combinations to save every ounce of CO2 it can and avoid paying fines once Euro 7 and China 7 regulations go into effect. Because sometimes you have to spend a lot of money to avoid paying a lot more money. Meanwhile, the yardstick keeps moving, and the EV transition keeps being delayed. READ MORE