Automakers are increasingly offering plug-in hybrid electric vehicles (PHEVs) as a best-of-both-worlds solution for the electric-curious who aren’t quite ready to commit to a car that runs solely on battery power.
But consumers don’t appear to be sold on the technology. That’s one of the takeaways from a new JD Power report that homes in on what the authors call the “plug-in hybrid paradox.”
Amid a slowdown in EV demand that has prompted automakers across the industry to pare back plans to go all-electric, many car companies are leaning into hybrids. This strategy also helps them meet tightening environmental regulations and aligns with new tailpipe emissions standards that go into effect later this decade.
PHEVs are available across dozens of makes and models, from the Chrysler Pacifica Hybrid to the Ford Escape to the Hyundai Tucson, and automakers like General Motors have said they plan to reintroduce them into their lineups.
Conventional hybrid electric vehicles, or HEVs, pair an internal combustion engine with a small battery and an electric motor. PHEVs rely more heavily on the electric power, and switch over to the engine when the battery is running low; as their name suggests, topping up the battery requires plugging them in.
Hybrids in general have been touted as a bridge solution for customers looking for better fuel efficiency but who are wary of battery-electric vehicles (BEVs). HEVs have recently soared in popularity, outpacing sales growth for combustion engine and electric vehicles alike.
PHEV sales have gone up, too. The Wall Street Journal reported that PHEVs were up 59% YoY in Q1. But as the JD Power report points out, they still make up a tiny sliver of the overall market—less than 2%—despite the push from automakers.
HEVs make up more than 10% of the market, while BEVs make up just over 9%. That disparity between HEVs and PHEVs exists even though there are more PHEVs on the market today: JD Power tallies 41 models in the US, compared with 39 HEVs.
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So, what’s keeping consumers away from this seemingly appealing option? The report points to two factors: higher prices and lower customer satisfaction.
PHEVs are “significantly more expensive to purchase than BEVs or HEVs,” with the average price for a compact SUV PHEV coming in at $48,700. BEVs and HEVs in this category, meanwhile, average $36,900 and $37,700, respectively, per JD Power.
Overall satisfaction with PHEVs stands at 669 on a 1,000-point scale, lower than both mass-market (716) and premium BEVs (738).
“On paper, it makes a ton of sense,” the report states. “In reality, it’s creating some new challenges.”
Some of the challenges PHEV owners reported include “higher-than-expected ownership costs associated with vehicles that have two different power sources, each with its own maintenance and fueling requirements.” And overall, it appears consumers simply aren’t seeing enough added value from a PHEV to justify spending more on them.
Edmunds recently put together a list of pros and cons of HEVs and PHEVs, in which it notes that HEVs don’t require plugging in—but are pretty limited on how far they can drive on electric power.
PHEVs, meanwhile, enable users to drive electric-only on short trips and charge up using a basic household outlet. However, they’re more expensive and have the potential to be less efficient than HEVs if users don’t charge them often.
“If you want to eliminate as much gasoline use as possible without diving into the deep end of the electric vehicle ownership pool,” according to Edmunds, “a plug-in hybrid is perfect.”
As the clean energy transition continues, we’ll see if consumers buy that.