Carmakers Advance Hybrid Models

• Consumer Car Intentions: In a survey of car buying intentions across China, the European Union (EU), the US and the UK, Chinese consumers were the only ones more likely to purchase an EV than a hybrid vehicle (53% versus 16%), while hybrid cars were most preferred in the EU (among 29%), the US (29%) and the UK (26%) (Statista, 2023).
  
  
• Toyota & Hyundai Put Hybrids First: In August 2024, Japanese manufacturer Toyota announced it would transition to producing only hybrid versions across its Toyota and Lexus brands. This is expected to happen by 2027, potentially representing a significant increase from the 37% sales share its hybrids accounted for in 2023 (CBT News, 2024). Production will happen at its forthcoming EV plant in the US, announced in February 2024.
  
  Meanwhile, South Korean carmaker Hyundai said in August 2024 it would double its selection of hybrid vehicles, offering a total of 14 models and adding large and luxury hybrid models (it currently offers only compact and mid-sized hybrids). Yet Hyundai will continue to expand its EV production, targeting two million annual unit sales by 2030.
  
  
• The Low-Emissions Outlook: While hybrid vehicle sales currently outpace EV sales in the US, it’s essential automakers implement strategies to reduce emissions. Addressing range anxiety will be crucial. Look to Hyundai’s Extended Range EV, which contains a very small petroleum tank as a back-up for long distances. It’s a formula that essentially flips the hybrid script, using battery power as the primary energy source rather than as a back-up.

For more on sustainable automotive, see our Spotlight Trend Accelerated Futures.