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

Photo of gray SUV plugged into public electric-vehicle charger in parking lot
Industryby Hannah MitchellJuly 21, 2026

World EV Adoption Set to Grow

A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.

Read More →
Bar chart of truck and SUV segments' weekly value change
Industryby StaffJuly 21, 2026

Black Book: Weekly Market Update

Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.

Read More →
laptop with blue car on screen on a shopping website, Clear Costs Convert
Industryby Lauren LawrenceJuly 21, 2026

Pricing Transparency Drives Purchase Consideration

An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.

Read More →
Ad Loading...
Bar graphic of used-car segment weekly change
Industryby StaffJuly 14, 2026

Black Book: Weekly Market Update

Used-vehicle market depreciation was the prevailing story in the wholesale market last week.

Read More →
Light-blue Fiat car parked on a sunny Chicago street
Industryby Hannah MitchellJuly 14, 2026

Smaller Is Looking Better

A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.

Read More →
man sitting at desk using calculator with charts in front of him, to-go coffee cup on desk, rising and falling data chart in front
Industryby Lauren LawrenceJuly 14, 2026

U.S. EV Market Slowly Stabilizes

U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.

Read More →
Ad Loading...
blue background, map of the world with connecting lights and an electric vehicle emblem in the middle
Industryby Lauren LawrenceJuly 8, 2026

Global EV Market Entering New Phase

Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.

Read More →
Bar chart showing week-over-week wholesale automotive price change
Industryby StaffJuly 7, 2026

Black Book Weekly Market Update

The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.

Read More →
Photo of Honda CR-V SUV on two-lane road next to roadside trees
Industryby Hannah MitchellJuly 1, 2026

Auto Affordability in Context

Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.

Read More →
Ad Loading...
Line chart of used-vehicle days to turn over past week
Industryby StaffJune 30, 2026

Black Book: Weekly Market Update

Automotive auction inventory increased last week, giving choosy bidders even more leeway.

Read More →