Despite the ongoing shift to purely electric vehicles, many leading firms in the automotive sector intend to keep producing hybrid models. In the United States, top companies like Ford, Toyota, and Stellantis have made it clear that they will continue to build and sell hybrid vehicles for the domestic market over the next five years.
For one thing, not every motorist is ready to make a full-on shift to electric even while considering more sustainable means of transportation. In which case, hybrids are considered the perfect alternative.
This did not come as a surprise for investment firm Ingalls & Snyder’s senior portfolio strategist Tim Ghriskey. He pointed out how many Americans have become comfortable using cars that can be powered with both gasoline and a rechargeable electric battery. As such, hybrid cars are much easier to sell than purely electric models.
Also, considering the fact that consumer demand for EVs doesn’t seem to be picking up steam, there has been a rebound when it comes to overall interest in hybrid vehicles.
Indeed, recent studies show that hybrids are a much cleaner ride and are, in their own way, compliant with evolving emissions requirements. This and the fact that they cost considerably less than most pure electric models make them more appealing to the motoring public.
And, based on S&P Global Mobility estimates, the best is still yet to come for the hybrid automotive sector. Based on their most recent forecast, the number of hybrids on American roads may triple over the next five years. In which case, they will make up around 24% of the country’s new vehicle sales come 2028.
Estimates for this year, however, remain conservative. S&P believes that hybrid sales will account for around 7% of total automotive sales in the US by the end of this year. Electrics will take a 9% share, but conventional internal combustion engine vehicles will still rule the roost with over 80%.