Electrified Vehicles Hit New Sales Highs
According to industry trade publication Automotive News, sales of electrified vehicles hit new records in the first quarter of 2024, reaching a combined 18.2 percent of new vehicle sales in the U.S. More and more drivers in the U.S. are choosing to add an electrified element to their new vehicle purchase – from a mild hybrid boost to completely electric power – to enjoy lower running costs as well as a smaller carbon footprint.
Hybrid Sales More than Double
In the first three months of 2024, hybrid vehicles were the big winner. With concerns about EV charging infrastructure getting more airtime in the news, more buyers looked towards hybrids to help reduce their fueling costs and emissions, without the potential inconvenience of having to find a public charger. Indeed, sales of conventional hybrid vehicles, which can’t be plugged in, more than doubled in the first three months of 2024, compared to the same period in 2023.
The number of hybrid vehicle choices available to buyers is greater than ever, and crucially, says Automotive News, many hybrid models have starting MSRP prices in the $30,000 range – significantly less than the average EVs, which tend to hover around $55,000 MSRP or more, with fewer inexpensive choices available to buyers. Conventional hybrids offer a more familiar ownership experience – there’s no change in lifestyle required to take advantage of their efficiency benefits.
EV Sales Flat, More Affordable Options Needed
Sales of fully-electric vehicles, while still strong, were basically flat when compared to the first three months of 2023 – after years of exceptional growth. The figures suggest that EVs are now past the “early adopter” phase where some consumers would pay a premium, or accept a few compromises, to drive a car with the latest tech. Automotive News, citing dealers as well as Cox Automotive, suggests that it will take more affordable choices to spur further growth in EV sales.
Most electric vehicles are larger, heavier, and more expensive products that don’t cover some key market segments, like compact cars and SUVs, where gasoline and hybrids continue to dominate. The Chevy Bolt, which historically has been one of the best-selling EVs in America, was one of very few EVs with a starting MSRP price under $30,000, and is no longer in production, while the Nissan Leaf has limited range; some new, affordable EV entrants could supercharge sales again.
One interesting thing to note in the EV sales figures is Tesla. The company is, despite dropping market share, still the dominant EV player, representing more than half of overall new EV sales. But Tesla’s sales slowed significantly in the first quarter of 2024, declining 13 percent, while many other brands experienced significant growth; strip Tesla out of the EV equation and the EV sales picture looks much more rosy.
What About Plug-In Hybrids?
Interestingly, plug-in hybrids, the halfway point between conventional hybrids and full EVs, also experienced significant growth in the first quarter, as sales rose 59 percent year over year. Unlike full EVs, there are a number of more affordable options available to buyers, such as the Toyota Prius Prime and RAV4 Prime – along with luxurious plug-ins like the BMW 7 Series and X5; Porsche Cayenne; and Jeep Grand Cherokee.
Loyalty to Electrified Options Is Strong
Automotive News also cited data from S&P Global Mobility on owner loyalty to certain vehicle types. Hybrids showed very strong loyalty, with 42 percent of hybrid owners returning to the market to purchase another hybrid, or a plug-in hybrid. Worryingly, EV owner loyalty to electric has decreased, with owners citing frustration with public charging infrastructure as their biggest complaint.
While the latest data shows that electric vehicles are currently in a “speed bump” phase of their sales growth – it’ll take better infrastructure as well as more affordable options to re-start the momentum – it’s nice to see that more drivers are prioritizing the lower emissions and running costs that all electrified vehicles provide.
