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

The Ford Escape PHEV is among 41 plug-in hybrids on the U.S. market.
Ford
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.
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.
Originally posted on Auto Dealer Today
More Industry

RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →
Mitsubishi Unveils U.S. Plan
The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.
Read More →
Selling to Grow
The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.
Read More →
Recalled Vehicles Hit 5-Year High
Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.
Read More →
Auto Group Acquires Top-Performing Rooftop
Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.
Read More →
China as Pacesetter
Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.
Read More →
BMW Concept Car Makes Fuel to Burn
The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.
Read More →
South Carolina Auto Group Downsizes
Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.
Read More →