Auto

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

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.

Share this news on your Fb,Twitter and Whatsapp

File source

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button