agent Entrepreneur logo
MenuMENU
SearchSEARCH

Many PHEVs Not Moving

Consumers say they’re not finding the higher cost worth it compared to hybrids and BEVs.

October 7, 2024
Many PHEVs Not Moving

The Ford Escape PHEV is among 41 plug-in hybrids on the U.S. market.

Credit:

Ford

2 min to read


Plug-in hybrid electric vehicles, though closer to purely electric models than hybrids in both carbon emissions reduction and fuel economy, are getting a cool reception from the buying public.

New research by J.D. Power finds that while automakers are trying to position PHEVs as a springboard to fully electric vehicle adoption, not many consumers are buying.

Ad Loading...

Though there are plenty of available PHEV models on the market, in fact a couple more than the hybrids segment, they still comprise less than 2% of the U.S. automotive market, compared to 9% for purely electric vehicles and 11% for hybrids, or HEVs, according to the study.

The top reasons for passing over PHEVs are their higher prices and lower customer satisfaction compared to their electric family counterparts.

J.D. Power found the average customer-facing transaction price, or the negotiated price before incentives are applied, for a compact PHEV SUV is $48,700, versus a hybrid of the same category at $37,700, and a purely electric model at $36,900.

Meanwhile, consumers have been less satisfied with PHEVs. The study found overall satisfaction at 669 on a 1,000-point scale compared to 716 for fully electric models. The reasons are ownership costs exceeding expectations paired with the more expensive purchase cost.

Automakers, seeing that overall EV adoption is proving slower than they had expected in recent years, have been retooling their strategies to fuel consumer interest, from offering Tesla fast-charger adapters to Ford's recent offer of free home chargers to EV buyers.

Ad Loading...

Originally posted on Auto Dealer Today

More Industry

Group photo of men outside storefront.
Industryby Hannah MitchellMay 28, 2026

Pennsylvania Dealership Under New Retailers

The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.

Read More →
Hallway with lockered wiring and computer
Industryby Lauren LawrenceMay 28, 2026

Battery Storage Takes Priority Over EVs

U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.

Read More →
Gray-scale photo of a line of Mini cars in a dealership parking lot
Industryby Hannah MitchellMay 27, 2026

Auto Dealers Feel Better But Not Great

A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.

Read More →
Ad Loading...
Closeup photo of the front of a white car
Industryby Hannah MitchellMay 21, 2026

New-Vehicle Sales Picture Relative

A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.

Read More →
Nissan logo on front of building
Industryby Lauren LawrenceMay 21, 2026

Auto Group Acquires Third Nissan Rooftop

Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.

Read More →
Couple talking with auto salesman next to new car inside dealership
Industryby Hannah MitchellMay 20, 2026

April Less Affordable

Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.

Read More →
Ad Loading...
Wooden people figures of different colors in a row, similar to board game pieces
IndustryMay 20, 2026

Building an Extraordinary F&I Agency

Work to determine your specialized talent, because that fact will determine everything about your agency’s future.

Read More →
Ingredient card, policies and procedures, fixed operations, variable operations, data security, audit
Industryby Jim GantherMay 19, 2026

Recipe for Compliance

The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.

Read More →
Photo of new Chevrolet Bolt parked on a beach
Industryby Hannah MitchellMay 14, 2026

EVs Getting More Attractive

A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.

Read More →
Ad Loading...
Benchmark bar graph showing April 2026 EV Sales
Industryby Lauren LawrenceMay 14, 2026

EV Sales Drop in April Following Surge

North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.

Read More →