Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: All or nothing: Why circular business models require a holistic approach
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automakers
July 28, 2022 10:18 AM

Plug-in hybrid sales fall as demand rises for full EVs

Plug-in hybrid cars are being left behind by EVs as subsidies are withdrawn and automakers concentrate on full-electric models.

Bloomberg
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Mercedes E class plug-in hybrid

    Plug-in cars are seen as a compromise by many consumers seeking to drive an electric car. A plug-in hybrid Mercedes-Benz E-Class model is pictured.

    Sales of plug-in hybrid vehicles are faltering in Europe, which has been their most important market to date, while demand is rising for for full-electric vehicles.

    As consumers turned away from diesel cars after Volkswagen's diesel scandal and Europe's lawmakers toughened emissions regulations, some automakers bet heavily on plug-in vehicles, which are powered by an internal combustion engine and an electric motor that can propel the vehicle without emissions for short distances.

    Plugs-in models offer consumers a way to get a sampling of the EV experience without jumping fully in and are often described as a transition technology — a bridge to a full-electric future.

    The latest data shows two very different sales trajectories between plug-in hybrids and full-electric vehicles.

    Sales of plug-in hybrids in France fell 28 percent in June. In Germany — another former stronghold for the technology — registrations dropped 16 percent.

    In the UK, plug-in hybrids were neck-and-neck with full-electric cars as recently as 2019. Now, two battery-electric cars sell for every one plug-in model.

    Some of this is to be expected. In 2020 and 2021, automakers had to meet Europe’s stricter CO2 targets for new vehicles, and plug-in hybrids were treated favorably under the regulations.

    Many automakers did not have their new full-electric architectures fully ready. When faced with two options — to market full-electric vehicles underpinned by modified internal combustion platforms, or plug-in hybrids — many opted for the latter.

    BLOOMBERG

    Europe’s vehicle CO2 regulations do not tighten again until 2025. As more automakers get their full-electric platforms ready for model launches, full-electric models look poised to continue their ascendency of the sales charts.

    Consumers are clearly ready, with wait times already stretching well into next year for most of the popular full-electric models in Europe.

    Many plug-in hybrid owners are happy with their cars.

    But from a policy perspective, there is an elephant in the room: drivers often do not end up charging these vehicles all that frequently.

    A recent study of 9,000 vehicles from the International Council on Clean Transportation found that real-world fuel consumption from plug-in hybrids was 2.5 to 5 times higher than what is approximated under official laboratory testing procedures.

    That gap between theory and practice is part of the reason national governments are cutting purchase subsidies for plug-in hybrids faster than for full-electric models.

    The UK, for example, eliminated purchase subsidies for plug-in hybrids in 2018, while Germany announced just this week that subsidies will end this year.

    BLOOMBERG

    One critical distinction here is that the share of electric kilometers driven on a plug-in hybrid depends heavily on who owns it.

    Among privately owned vehicles, the ICCT study found real-world electric-driving share was 45 percent to 49 percent. Not bad, though still short of what the official test cycles assume.

    For company cars, that dropped to a dismal 11 percent to 15 percent. Company vehicles are a huge part of the market in Europe, accounting for more than half of new-car sales in many countries.

    Upcoming policy changes could further erode the case for plug-in hybrids. The European Commission is expected to introduce new “utility factors” for these models from 2027. These are the values intended to reflect how often the vehicles are driven in electric mode, and critically, what CO2 emissions value they are assigned.

    The goal for the regulation is to use real-world driving behavior from both private and company-owned vehicles to set the values, using on-board monitors.

    Unless something dramatic changes in the next few years, this will make plug-in hybrids a less attractive way for automakers to meet emissions regulations.

    Manufacturers will see this change coming down the road and start to allocate investments accordingly.

    Relatively strong sales of plug-in hybrids in China are keeping the global numbers afloat for now.

    Plug-in sales there more than doubled last year, led by offerings from BYD and Li Auto, though even that was not enough to keep pace with growth in full-electric demand.

    China has more high-rise apartment dwellers with limited home-charging options, but the government is making a huge push to build out public-charging options and help keep the full-electric car market expanding quickly.

    The municipal government in Shanghai is also set to remove favorable treatment for plug-in hybrids beginning in 2023, and others could follow.

    If plug-in hybrids are a bridge, it’s starting to look like a short one.

    RECOMMENDED FOR YOU
    VW's potential battery IPO attracts high investor interest, top shareholder says
    Recommended for You
    VW Battery production
    VW's potential battery IPO attracts high investor interest, top shareholder says
    cupra-born_01.jpg
    VW's Cupra brand weighs entering U.S. market with larger EVs
    The Ford Mach-E
    Ford expects to lose $3B on EVs this year
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: All or nothing: Why circular business models require a holistic approach
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us