Summary:
Anecdotal evidence suggests that many car buyers may not be ready for fully electric vehicles (EVs) but are open to plug-in hybrids (PHEVs). However, a new E-Vision Intelligence Report from JD Power reveals that customer interest in PHEVs remains low. Despite more PHEV options available, their market share stands at only 1.9% of total vehicle sales in the US as of August 2024, down from July. In comparison, EVs account for 9.4%, while traditional hybrids represent 10.7%.
One major deterrent for PHEV buyers is cost. The average transaction price for a compact SUV with a PHEV powertrain is $48,700, significantly higher than the average prices for hybrids ($37,700) and EVs ($36,900). The Inflation Reduction Act has also impacted PHEV sales by removing the $7,500 tax credit for most models, leaving only the Chrysler Pacifica Hybrid eligible for the full credit.
Customer satisfaction with PHEVs is notably lower than with other electrified vehicles. PHEVs scored 669 out of 1,000 in customer satisfaction, compared to 716 for mainstream EVs and 738 for luxury EVs. This dissatisfaction arises from the perception that PHEVs, marketed as a compromise between gasoline and electric power, end up offering the disadvantages of both. Owners find the costs higher due to maintenance on internal combustion components without a significantly improved experience. Ultimately, while PHEVs sound appealing, reality shows that they may not be the ideal solution for consumers looking to transition to electrification.
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