Why plug-in hybrids are failing to win over consumers | Automotive News

Oct 17, 2024

Hyundai's Tucson plug-in hybrid.

Plug-in hybrids are not the electric vehicle compromise that consumers have been clamoring for, according to a new study from J.D. Power.

"There's been a lot of focus on creating intermediary steps for consumers who may not be ready to fully adopt a battery-electric vehicle yet," Brent Gruber, executive director of the EV practice at J.D. Power, told Automotive News. But the experience of plug-in hybrid owners "really isn't favorable in comparison to battery-electric vehicles."

PHEVs have electric range — usually around 25 miles — that can be recharged at an owner's home or at a public Level 2 charger. Drivers can also use gasoline to power their vehicles. Some automakers view PHEVs as a bridge to BEVs and plan to add more to their lineups. There were 41 PHEV models available in the U.S. as of August 2024, compared with 29 in August 2022, J.D. Power said.

But consumers aren't champing at the bit.

Overall satisfaction on a 1,000-point scale with PHEVs is 669 while mass-market satisfaction with BEVs is 716, according to J.D. Power consumer satisfaction data. Satisfaction with premium EVs is 738 on a 1,000-point scale.

"Plug-in hybrids have their merits for certain people, but when you look at that ownership experience, it's certainly not as positive as battery-electric vehicle ownership experiences," Gruber said.

Through August, PHEVs represented just 1.9 percent of total vehicle sales, a slight decrease from July, according to J.D. Power's September 2024 E-Vision Intelligence Report. In comparison, BEVs made up 9.4 percent of the market, while conventional hybrids accounted for 10.7 percent.

The industry widely embraced PHEVs as a bridge to meet ambitious low-emissions targets. The 41 PHEV models in the U.S. as of August compares with 39 hybrid models and 60 EV models, according to J.D. Power.

PHEVs are costly to purchase and maintain because they have two powertrains. The ownership experience doesn't always align with the premium price point, especially as less-expensive BEVs enter the market.

The average transaction price for a PHEV in the compact SUV category is $48,700, while compact hybrid crossovers are $37,700 and compact battery-electric SUVs are $36,900, according to J.D. Power.

"These findings should really frame the discussion and decisions around how OEMs plan through this transition — going from ICE to battery-electric vehicles," Gruber said. The transition isn't always smooth, but PHEV owners tend to have a worse experience than EV owners, he added.

Most EV owners quickly adapt to the lifestyle changes these vehicles bring, Gruber said, such as charging, and they realize their initial anxiety was misplaced.

Better access to reliable information — such as how a PHEV's electric range could fit a customer's needs — can help address issues surrounding consumer adoption, Gruber said.

"Dealers are the frontline educators in the EV space," he added. "It needs to start with them."

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