Hybrid vehicles are poised to gain market share, Cloud Theory finds

Hybrid vehicles are poised to gain market share, Cloud Theory finds

This expectation comes after the Biden Administration slashed EV adoption targets from 67% to 35% by 2032.

In recently published findings from Cloud Theory’s Rick Wainschel, vice president of data science and analytics, changes in environmental regulatory requirements for the auto industry over the past six months have shifted focus from EVs and created a pathway for hybrid vehicles to gain more market share. These changes also shift power away from EV leader Tesla to more hybrid-focused OEMs, the research found. The findings are part of “Charging Ahead: Hybrids Come into Sharper Focus as EV Aspirations Meet Reality” by Wainschel.

“Regulatory requirements and dates have eased, with the Biden Administration slashing EV adoption targets from 67% to 35% by 2032,” Wainschel said. “With that shift, OEMs have pulled back on their investments and reduced their EV scale and scope.”

According to the findings, hybrids have been gaining in inventory share and market share for the past three years, and these changes will only add to the momentum in this sector. In Q1 2024, the year-over-year hybrid share of vehicle movement jumped 3.2 percentage points, to 11.6% from 8.4% in Q1 2023. EV share (excluding Tesla and Rivian) grew only 1 percentage point from 2.6% in Q1 2023 to 3.6% in Q1 2024. EV inventories (5.5%) outpaced EV market share, indicating that there is still an oversupply imbalance that was driven by overproduction as OEMs had moved towards meeting the prior regulatory standards. Meanwhile, hybrid inventory share was significantly less than market share in Q1 2024 (9.3%% vs. 11.6%), indicating that there is room to grow that sector further.

“The shift from a sustainable future focused on EVs to one balanced between EVs and Hybrids profoundly changes the competitive landscape,” Wainschel said. “Companies such as Toyota Motor Group, Hyundai Motor Group, Stellantis, Ford Motor Company and Honda Motor Company all have well-developed hybrid lines and now have a more varied patch to achieve fuel economy goals and regulatory requirements.

The shift will present a challenge for EV-centric companies such as Tesla, Rivian and Polestar, which must contend with consumers — who have expressed reluctance to purchase EVs due to battery concerns, charging anxiety, and high purchase costs — with only an EV offering, Wainschel said.

“The shift in regulatory focus gives traditional OEMs more options to meet government standards and to appeal to consumers,” he said. “Ford’s recently launched ‘Your vehicle, your choice’ campaign, for example, opens pathways that EV-specific rivals can’t follow. Trading gas-powered vehicle purchases for enough hybrid replacements can help traditional OEMs extend regulatory demands and timelines even further, thereby reducing pressure to quickly and unprofitably introduce EVs.”

For more electric vehicle news, visit The Buzz EV News.

You May Also Like

GM Energy offers ability to transfer power between EVs and homes

The bundle includes equipment to enable the transfer of energy between a compatible EV and a properly equipped home.

DETROIT — As EV technology continues to evolve, GM is working toward elevating the overall ownership experience by introducing new ways for customers to unlock additional value and gain access to the expanded benefits of an all-electric future.

Available for the first time as part of its expanding product ecosystem, GM Energy's initial offerings for residential customers will enable the use of vehicle-to-home (V2H) bidirectional charging technology to provide power from a compatible GM EV to a properly equipped home, helping to mitigate the negative impacts of weather-related outages and integrate with future clean energy products for even greater personal grid resiliency.

Research finds that caffeine boosts platinum electrode performance

This discovery has the potential to reduce platinum requirements, making fuel cells more affordable and efficient, the researchers said.

Research finds that caffeine boosts platinum electrode performance
Home charging satisfaction a bright spot among EV owners, J.D. Power finds

Bidirectional charging allows the vehicle to send energy for use by other devices in the home, or it can be potentially returned to the grid to offset consumer energy costs.

charging electric vehicle at home in garage
GreenPower launches EV Star Utility Truck for commercial fleets

VANCOUVER, British Columbia — The EV Star Utility Truck is purpose-built and fully customizable to fit a range of vocational applications.

Mullen reaches 500 commercial vehicles produced at MS facility
Volvo Cars partners with, invests in Breathe for fast-charging software

Volvo said the collaboration with Breathe is the result of a sourcing agreement for its flagship product, Breathe Charge.

Volvo Cars partners with and invests in Breathe for fast-charging software
Other Posts
Fermata Energy, BorgWarner partner on bidirectional EV charging

Together, the companies are accelerating ongoing efforts to integrate bidirectional charging capabilities with a variety of automotive OEMs.

Fermata Energy, BorgWarner partner on bidirectional EV charging
Autel releases AC Elite G2 charging series 

The charger can be used in various settings, such as public commercial parking areas, residential areas, hospitals and service areas.

Autel AC Elite G2 chargers
Elywhere launches in North America

Elywhere said its chargers can be configured to support power in the 1 MW range, providing solutions for electric fleets.

Elywhere launches in North America
Toyota invests in Kentucky facility to increase EV assembly

Since 2021, Toyota has announced new investments totaling $17 billion into U.S. manufacturing operations supporting electrification.

Since 2021, Toyota has announced new investments totaling $17 billion into U.S. manufacturing operations supporting electrification.