P&A Providers & Administrators
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

Subwoofer in trunk of car.
Industryby Lauren LawrenceMay 26, 2026

Ownership Priorities are Shifting

A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.

Read More →
Man's hand holding gas pump in fuel tank of white car
Industryby Hannah MitchellMay 26, 2026

Pump Price Jump Calculated

ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.

Read More →
Graphic showing previous week's truck and SUV segment prices
Industryby StaffMay 20, 2026

Black Book: Weekly Market Update

Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.

Read More →
Ad Loading...
Photo of dealership sign with Toyota logo
Industryby Lauren LawrenceMay 19, 2026

Arkansas Auto Group Acquires First Indiana Rooftop

Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.

Read More →
Headshot photo of Antonio Filosa, Stellantis CEO
Industryby Hannah MitchellMay 19, 2026

Stellantis to Dive Into U.S. Lending

The multinational maker of Chrysler, Dodge, Jeep, Ram and multiple other brands received conditional approvals for a Utah-based industrial bank.

Read More →
Photo of the rear of a new BMW iX SUV
Industryby Hannah MitchellMay 12, 2026

New-Vehicle Prices Rise

With April sales down, higher prices on in-demand large vehicles helped inflate the overall ATP, though increases were under long-term averages, Cox Automotive reported.

Read More →
Ad Loading...
Graphic of car segments' results the previous week
Industryby StaffMay 12, 2026

Black Book: Weekly Market Update

Last week in the wholesale automotive market proved to be a mixed bag, analysts reported.

Read More →
Graphic of last week's estimated used retail days to turn
Industryby StaffMay 6, 2026

Black Book: Weekly Market Update

Conversion rates were flat last week at 63%, Black Book analysts calculated, as low-mileage and almost-near units outpaced the overall market.

Read More →
cargo ship with vehicles, at dock
Industryby Lauren LawrenceMay 5, 2026

EU Auto Association Urges Action

Trade relations between the European Union and the U.S. are at risk, causing the European Automobile Manufacturers Association to push lawmakers to make a decision.

Read More →
Ad Loading...
two people working on a paper contract together
IndustryMay 1, 2026

Driving into the Super CFC Era

Understanding the risks and benefits of retail accounting and Super CFCs can help you better present options to your dealer partners.

Read More →