Hybrid cars are expected to fly off the lots, as many customers will look to save fuel costs but won’t be inclined or able to buy an EV.
According to new data collected by S&P Global Mobility, the sales numbers of hybrid cars in the USA are expected to triple over the next five years.
The report states that by 2028, new hybrid car sales in the USA will make up 24 per cent of the market. Currently, hybrids are expected to end 2023 with just 7% market share. However, Ford CEO Jim Farley expects hybrids to have even higher sales growth. Farley reportedly forecasted hybrid car sales to quadruple over the same period in a recent Q2 earnings call.
The reports also state that EVs are expected to control 9% market share this year and increase it to 37% by 2028. Sales of EVs have been driven aggressively by tax incentives, but now, with the EV tax credits not accessible, demand could lag behind expectations.
The lag in EV demand is expected to help hybrids in the US market. The data states that major players in the hybrid segment are Toyota, Ford and Stellantis. Hybrid cars are expected to fly off the lots, as many customers will look to save fuel costs but won’t be inclined or able to buy an EV. The report also expects battery shortages in a few years’ time to harm EVs in the long term, leaving hybrids to fill in the demand.
Keyword: USA: Hybrid car sales to triple in the next 5 years