In recent years, global automakers and their suppliers have invested hundreds of billions in the development of new electric vehicles and infrastructure for them — despite this, demand for electric cars has slowed somewhat, while interest in hybrids has increased dramatically.
Steve Kosowski, manager of long-term planning and strategy at Kia Motors America, says that hybrids, with their superior efficiency and lower cost, offer consumers a great alternative that does not cause concerns about range and bridges the gap between ICE and EVs.
Sales of electric vehicles in the first quarter of 2024 fell by more than 15% compared to the previous three months (the first drop since 2020), while hybrids grew by 45.7% from January to March and plug-in hybrids by a whopping 69.7%, according to PWC (via Business Insider). Because of this, some automakers are postponing their plans to completely abandon the internal combustion engine.
At the same time, Kia, which has released a dozen new BEVs in recent years, including the stylish EV3 SUV in May 2024, sees hybrids as an opportunity to attract potential BEV buyers.
«If you look at the market resistance to buying electric vehicles, the first thing that comes up is price, and then range and (charging) infrastructure,» Kosowski said. «But if you look at hybrids and PHEVs, the resistance is much lower due to price. The last time I looked, the transaction prices for PHEVs and plug-in hybrids were the same, and that signals that consumers want to electrify and are willing to pay for it».
In the first quarter of 2024, hybrids accounted for about 8.4% of the total car market.
The development of electric vehicles also costs significantly more than in the case of internal combustion engines and hybrids.
«The cost of materials for electric vehicles is so high that the margin for everyone is shrinking until it becomes negative», — Kosowski adds, noting that electric vehicle sales will only grow, especially given the emissions regulations that countries are introducing today.