A new report from Bloomberg claims hybrid cars — the 30 year old technology made popular by the Toyota Prius — are now the hottest segment on the new car market worldwide. That has caused some consternation among the staff here at CleanTechnica. where hundreds of dedicated staff members spend their every waking hour bringing our readers the latest news about electric cars. We tend to denigrate hybrids as a last century semi-solution to the 21st century’s most pressing challenge — a rapidly warming planet. Are we simply a bunch of rose colored glasses wearing acolytes praying at the altar of electrons? Perhaps so. “Global sales of electric vehicles are slowing dramatically as consumers balk at steep prices and spotty charging infrastructure. In this odd climate, hybrid cars are hot again after a quarter century out of the limelight. Automakers are selling more of them than ever, and in more countries, ramping up production to meet demand,” is how the Bloomberg report begins. Really? Global EV sales are down? Our monthly sales reports from our global network of analysts indicate they are quite robust, with improvements in charging infrastructure and lower prices driving the EV revolution forward. In Norway, battery electric cars account for nearly all new car sales. Perhaps Bloomberg is being unduly influenced by what is happening in the US, where official government policy is to resist the transition to electric vehicles in every way possible in order to reward the fossil fuel industry that pumps so much money into right wing campaign coffers. “Hybrids accounted for about 1 in 7 new cars sold in the US last year, up from less than 3 percent in 2020. In Spain, hybrids make up almost half of all deliveries; in Japan, more than half. India, South America and Southeast Asia are expected to be the fastest-growing markets through 2035, according to research company GlobalData,” Bloomberg says. “Hybrid sales are likely to rise in China as well — despite a government policy favoring EVs — while in the US demand is expected to more than double over the next decade. Even California is back on the bandwagon, with hybrid registrations overtaking those of EVs in the second quarter.” What’s In A Name? Bloomberg makes a classic mistake in its reporting, however, by lumping hybrids — like the Toyota RAV4 — together with plug-in hybrids like the Toyota RAV4 Prime. As of June, Toyota no longer makes a gasoline-only RAV4 in the US. While the regular hybrid outsells the plug-in version, the PHEV offers significantly more horsepower and can travel about 50 miles on battery power alone, which means for many US drivers, they can avoid buying gasoline at all for weeks at a time. It does cost about $5000 more than the standard hybrid however, while traditional hybrids typically cost $1,500 to $3,000 more than gas-only models. David Christ, who leads the Toyota brand in North America, told Bloomberg, “The consumer has spoken, and hybrids are a hit. We’re just going to keep building more.” In the US, demand for hybrid versions of its RAV4 compact crossover is so strong that owners are selling them used for more than they paid for them. Their popularity is a big reason Toyota is on pace to become the US sales leader this year. “For all of the vehicles we are developing, the base assumption right now is that it should be 100 percent hybrid,” said Cooper Ericksen, the head of product planning for Toyota in the US. The company’s shift in its thinking began six years ago when it stopped offering the conventional gasoline powered Sienna, making them all hybrids instead. “What happened with Sienna, honestly, surprised us a bit, because it was super popular — even after we raised the price. That gave us the confidence to start re-looking at our product lines. I cannot tell you the amount of hand wringing we had inside the company about that,” Ericksen said. .The gasoline-electric category has come a long way since the Toyota Prius arrived around the turn of the century. Whereas hybrids were once seen as a pit stop in the transition to fully electric vehicles, consumers are choosing them over EVs in greater numbers because they are usually cheaper, have a longer driving range, and can be refueled at any gas station, Bloomberg said. The High Price Of Low Cost Gas prices August, 2026 at Big Sur, California. Credit: Arnold Fox. Used with permission. Analysts see hybrids accounting for up to 40 percent of global production by 2030 and continuing to grow until 2050. One factor likely to accelerate demand is the closure of the Strait of Hormuz, which has sent gasoline prices sharply higher. “The war is an area of concern, but even after it concludes, we expect high oil prices to persist,” Song Ho-sung, the CEO of Kia, told Bloomberg. “This environment will push the appetite for EVs and hybrids higher.” Well, at least he included EVs in his assessment. If the issue is reducing the cost of gasoline in the family budget, EVs consume none at all. Advances in hybrid technology are making them more appealing and cost-effective, Bloomberg says. Toyota’s newest powertrains are smaller and lighter, helped by fusing several components into a single unit, while the engines are more efficient. Improvements to battery systems, efficiencies in the supply chain, and the increased volume of production make the cars cheaper to build. Toyota has streamlined the electrical cables that act as the vehicle’s central nervous system, cutting copper use by 20 percent. Looking outside the US, hybrid sales rose 44 percent in Mexico in the first half of 2026 according to government data. Chinese companies have played a major role in driving hybrid growth, said Rosa Rubio, an analyst at Monex, a financial group based in Mexico. “They’ve brought greater variety, more options and more affordable prices,” she says. Even without a discount, shoppers are receptive to the idea of driving a hybrid. Angel Gutierrez, an adviser to several dealerships in Mexico that sell BYD, Geely and Toyota vehicles told Bloomberg, “When a customer walks in looking for a gasoline car, 70 percent leave with a hybrid. Once you show them the fuel savings comparison, the decision practically makes itself.” Hybrid Vs. Electric If a hybrid is good at lowering fuel costs, an electric car is three times better. A hybrid might get 40 mpg, but most EVs get the equivalent of around 120 mpg. People seem not to know that they can charge any electric car simply by plugging it into a wall outlet at home while they sleep — no expensive electrical panel upgrade or dedicated EV charger needed. Why dealerships and manufacturers are not shouting about this from every rooftop is a great mystery. While hybrids appear to be here for the foreseeable future, there are reasons to believe the technology won’t last forever. The cars depend on two powertrains — an internal combustion engine and an electric motor — which increases their cost, complexity, and weight. Automakers say that after 100 years of maximizing the efficiency of gasoline engines, significant gains in the future are unlikely. Unlike electric motors, which are typically 95 percent efficient, even the best gas engines struggle to convert more than a quarter of the fuel they burn into forward motion. If there are gains in efficiency to be had, they will come mostly from prioritizing electric propulsion that replaces gasoline entirely. That’s really the secret to lowering the cost drivers pay to operate their cars. No pump, no fuel costs. Brilliant!
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