Key Components of a Hybrid Electric Car

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HYBRID VEHICLE MARKET – GROWTH, TRENDS, COVID-19 IMPACT, AND FORECAST (2022 – 2027)

The Hybrid Vehicle Market has been segmented by Hybrid Type (Micro-hybrid, Mild-hybrid, Full-hybrid, and Plug-in Hybrid), Vehicle Type (Passenger Cars and Commercial Vehicles), and Geography (North America, Europe, Asia-Pacific, and Rest of the World). The Report offers Market Sizes and Forecasts for the Hybrid Vehicle Market in value (in USD billion) for all the above segments.

The COVID-19 pandemic has hindered the growth of the hybrid vehicle market as continuous lockdowns and shutdowns of manufacturing units resulted in a decline in production levels of these vehicles.

Market Overview

The hybrid vehicle market was valued at USD 324.92 billion in 2021, and it is expected to reach USD 1,490.1 billion by 2027, registering a CAGR of 28.90% during the forecast period (2022 – 2027).

The COVID-19 pandemic has hindered the growth of the hybrid vehicle market as continuous lockdowns and shutdowns of manufacturing units resulted in a decline in production levels of these vehicles. Moreover, supply chain complexities have contributed to the increased cost of hybrid vehicles.

However, the sales of hybrid electric vehicles improved post-June 2020 as the lockdown lifted in most countries. The forecast period is expected to be optimistic as manufacturers are planning to launch new models to attract customers. In 2020, Toyota sold 337,000 hybrid vehicles in the United States, accounting for 16% of US sales, and it plans to launch new models of hybrid electric vehicles in 2022.

Some of the major factors driving the growth of the market studied are the enactment of stringent emission and fuel economy norms and government incentives for promoting the purchase and adoption of hybrid vehicles. Additionally, with governments taking stringent actions, in the form of regulation and incentives, along with the increased initiatives for the provision of public charging stations for electric vehicles, the market studied is expected to grow at a high rate.

The Asia-Pacific hybrid vehicles market is expected to witness a high growth rate during the forecast period. The market growth in this region can be attributed to the increased sales of hybrid vehicles in Japan, China, and South Korea. As the Asia-Pacific region is home to major players in the hybrid vehicles market, such as Toyota, Honda, Nissan, Kia, BYD, and Hyundai, their active engagement in this segment creates a positive environment in the market.

Scope of the Report

Hybrid vehicles are powered by an internal combustion engine and an electric motor, which uses energy stored in batteries where the battery is charged through regenerative braking and by the internal combustion engine. The hybrid vehicle market report covers the latest trends, COVID-19 impact, followed by technological developments in the market. The scope of the report covers segmentation based on hybrid type, vehicle type, and geography.

By hybrid type, the market is segmented into micro-hybrid, mild-hybrid, full-hybrid, and plug-in hybrid. By vehicle type, the market is segmented into passenger cars and commercial vehicles.

By geography type, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World. For each segment, the market sizing and forecast have been done on the basis of value (in USD billion).

Report scope can be customized per your requirements. Click here.

Key Market Trends

Rising Government Subsidies and Policies to Drive the Market

Globally, governments are offering many subsidies (tax rebates and incentives) for customers purchasing electric and hybrid vehicles. The Chinese government recently introduced measures to support the new energy vehicle (NEV) industry, i.e., electric vehicles, plug-in hybrid vehicles, and fuel cell vehicles – which were hit hard by the COVID-19 outbreak, by extending tax exemptions and subsidies that were set to expire by 2020 and hinted at new investments that could further boost the country’s hybrid electric vehicle market in the long run.

The demand in the hybrid vehicle market is rising in developing countries such as Mexico, India, and Brazil due to stringent emission regulation standards and the growing demand for low or zero-emission vehicles. Recently, in 2021, the Government of India announced an extension of its prestigious scheme FAME II till 2024 to encourage electric mobility across the country. In similar terms, the Brazilian government is encouraging the purchase of hybrid vehicles such as plug-in hybrids, hybrid electric, and CNG hybrids by reducing the tax rate.

The governments in the United States and Europe are also concentrating on lowering emission limits to decrease the greenhouse gas effect and are also focusing on improving the fuel economy of vehicles. For instance, the US Department of Transportation has set Corporate Average Fuel Economy (CAFE) standards for vehicles. The United Kingdom committed to a target of net-zero emissions by 2050 and proposed a ban on the sale of all polluting vehicles by 2035. Germany plans to cut greenhouse gas emissions by 40% by the end of 2020, by 55% by the end of 2030, and up to 95% by the end of 2050, compared to 1990 levels, supporting market growth.

Electric and hybrid modes of transport are gaining momentum in the Gulf region, particularly in Israel, Jordan, Oman, Saudi Arabia, and the United Arab Emirates. For instance, Dubai’s Roads and Transport Authority announced its ambitious plans for converting half of the Emirate’s cabs to hybrid vehicles by 2021. All developments across government policies and regulations implemented to encourage hybrid electric vehicles consumption indicate an optimistic environment for hybrid vehicle demand over the forecast period.

Hybrid Vehicle Market: Number of Licensed Plug-in Grant Eligible Cars in United Kingdom, Quarter wise, 2018-2020

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China to Play a Key Role in the Development of the Hybrid Vehicle Market

China is one of the significant players in the hybrid electric vehicle market across the world as it accommodates notable production capabilities and consumer demand. China started gaining momentum post-pandemic, and the demand for these hybrid and plug-in hybrid electric vehicles started seeing positive trends. For instance, over 0.22 million new plug-in hybrid electric vehicles (PHEV) were sold in China in 2020. Such instances are expected to encourage players operating in the market.

In addition, government incentives and key players’ presence further add to the development of demand in the market during the forecast period. For instance, the Chinese government started implementing China 6 norms for pollution control in the region, which are stricter than previous China 5 norms and are based on EURO 6 norms, from July 2020, which supported the demand for micro hybrid vehicles in this region. In February 2020, Honda Motor Company Ltd announced to begin its sales of all-new Honda Fit Hybrid vehicles. It is equipped with Honda’s 2-motor hybrid system, which drives the vehicle with an electric motor, resulting in better fuel efficiency and smooth drive.

During the forecast period, the country may also witness growth in the adoption of hybrid electric buses, as more than 30 Chinese cities have made plans to achieve 100% electrified public transit, including Guangzhou, Zhuhai, Dongguan, Foshan, and Zhongshan in the Pearl River Delta, along with Nanjing, Hangzhou, Shaanxi, and Shandong. All these aforementioned factors and developments are anticipated to help China stand as a unique destination for investments by manufacturers and are expected to play a prominent role in the growth of the overall hybrid vehicle market over the forecast period.

Hybrid Vehicle Market - Growth Rate by Region , 2022 - 2027

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Competitive Landscape

The hybrid vehicle market is dominated by some of the major automotive players, such as Toyota, Nissan, Honda, BYD, Mitsubishi, BMW, and Ford, of which Toyota, Nissan, and Honda hold a significant market share of the global hybrid vehicle market.

Some of the key players operating in the hybrid vehicles market are Ford Motor Company, General Motors Company, Honda Motor Co., Ltd., Daimler AG, and Volkswagen AG, which are also planning to provide enhanced product portfolios and technological breakthroughs in the hybrid vehicles market. For instance,

In 2021, Toyota announced an investment of around USD 6.2 billion for developing a hybrid vehicle technology. It also stated that the company was planning to invest USD 13.6 billion in batteries used for electric and hybrid vehicles by 2030.

In 2021, The Volkswagen Group announced that it was planning to invest EUR 73 billion in electrified models, hybrid powertrains, and digital technology until 2026.

Major Players

Recent Developments

In March 2021, Nissan was working on a mild-hybrid GT-R model, which is expected to launch in late 2022. This GT-R would have a 48-volt mild-hybrid system that is likely to be paired with the current GT-R’s 3.8-litre twin-turbocharged V6 engine. It is supposedly codenamed GT-R R36.

In October 2021, Mercedes-Benz unveiled its two models, GLE and GLE Coupé, as diesel mild hybrids. They are equipped with the current four-cylinder diesel engine (OM 654 M) with an integrated second-generation starter-generator (ISG) and deliver 200 kW/272 hp. The current OM 654 M engine is equipped with a second-generation integrated starter-generator (ISG). The ISG includes a 48-volt electrical system.

In October 2020, BMW AG announced it would be launching 25 hybrid electric vehicle models across the world by 2023.

In August 2020, Paice, a hybrid vehicle technology provider, announced it had signed an agreement to license its patented hybrid technology to Mitsubishi Motors.

THE PROS AND CONS OF HYBRID VEHICLES

How long does a hybrid car last?

Typically, leading hybrid car manufacturers like Honda and Toyota state that hybrid batteries last between 80,000 to 100,000 miles. But with regular maintenance and servicing, some hybrid car owners claim their batteries have lasted up to 200,000 miles!

Finding such a car, though, is not easy. Electric cars and gas-electric hybrids are in short supply, and prices have been climbing rapidly. Smaller gasoline-powered cars are also scarce, as automakers have focused on building more lucrative pickup trucks and SUVs.

WHAT IS A HYBRID CAR?

Hybrid vehicles (HEVs) are typically equipped with two different propulsion technologies: an electric motor powered by a rechargeable battery pack and an internal combustion engine (ICE) that’s typically gasoline-powered. While the high voltage battery pack provides the energy to the electric motor(s), which propels the vehicle at lower speeds, the combustion engine provides the torque at higher speeds. There are many differences between electric, hybrid, and standard gas vehicles, but the combination of the electric motor(s) and an ICE are the main distinctions.

Plug-in hybrids (PHEVs) and HEVs differ slightly. An HEV typically utilizes a combination of an ICE and a high voltage electric drive system that helps to provide propulsion or propulsion assist. Regenerative braking helps recharge the battery.

A PHEV is a hybrid electric vehicle whose battery pack can also be recharged by plugging a charging cable into an external electric power source. The propulsion strategy in PHEVs uses the larger battery to drive the vehicle in full electric mode until much of the battery charge is spent. When this happens, the propulsion strategy changes to work like an HEV using the remaining battery charge, the ICE, or both.

Hybrid cars are becoming more common as manufacturing prices decline and as they become more affordable for the average driver. Here are some hybrid car cons and pros to consider when deciding whether this vehicle type is right for you.

DISADVANTAGES OF HYBRID ELECTRIC CARS

1. HIGH VOLTAGE SYSTEM REPAIR COSTS MAY BE MORE EXPENSIVE.

Although hybrid vehicles may require less regular maintenance, they can get a little pricey when they need repairs — especially i fthe issue is your car’s high voltage system. Replacing a dead or damaged high voltage battery can cost thousands of dollars depending on the battery type and specific make and model of your ride

In addition to the standard tech installed on ICE vehicles, hybrid vehicles are jam-packed with complex components — from large high voltage battery packs and inverters to electric motors and improved cooling systems. Not only can these complex mechanisms make hybrid repairs more expensive, but not all mechanics have the equipment and knowledge to fix them properly.

Fortunately, Firestone Complete Auto Care technicians have the tools and training needed to complete everything from general maintenance on hybrid vehicles to high voltage system repairs. Call to verify if your local Firestone Complete Auto Care offers these high voltage system repairs today!

2. THEY MAY HAVE A HIGHER UPFRONT COST.

When switching to a hybrid vehicle, you might have to pay a higher amount upfront. Although the sales price for this car type is narrowing, they often remain more expensive than standard ICE alternatives. Fortunately, you may be able to offset this initial expense with tax exemptions and federal incentives, lower running costs, and fuel savings.

3. THEY MAY HAVE LESS POWER WHEN COMPARED TO STANDARD ICE VEHICLES.

Hybrid vehicles are manufactured for lower CO2 emissions and improved fuel economy but are rarely designed for racecar-like speed and acceleration. Many of the performance enhancements on conventional cars that impact maximum horsepower are often sacrificed.

For example, since hybrid vehicles have two propulsion methods, space and size are typically adjusted. The effect — hybrid vehicles often have slower top-end acceleration than their conventional contemporaries.

ADVANTAGES OF HAVING A HYBRID CAR

1. HYBRID CARS MAY BE MORE ENVIRONMENTALLY-FRIENDLY.

Compared to standard gas vehicles, hybrid versions of the same car model offer many “green” benefits. From lower emissions to better gas mileage, you can rest assured you’ll be reducing your carbon footprint by making the switch. When weighing the environmental pros and cons of hybrid cars, here are a few of their advantages.

Greater Fuel Efficiency: Because hybrid cars don’t solely rely on their gas engine to run, less fuel may be needed to propel a hybrid vehicle. The effect — improved fuel efficiency.

Reduced CO2 Emissions: Standard vehicles emit tailpipe emissions that can wreak havoc on the environment. Hybrids have better fuel efficiency and conserve more energy, thus emitting fewer carbon emissions.

Less Fossil Fuel Dependency: Since hybrid vehicles are able to utilize the high voltage battery pack and electric motor(s) for propulsion, they don’t rely on fossil fuels as much as standard gas cars.

Regenerative Braking: When you apply the brakes while driving most hybrid vehicles, energy is produced and used to recharge your high voltage battery. This action can result in less fuel consumption.

2. THEY MAY REQUIRE LESS MAINTENANCE.

Since hybrid vehicles use a combination of the high voltage battery pack, electric motor, and an ICE to propel the vehicle, you may experience less wear and tear on your car’s engine. By offsetting the typical engine wear and tear that can occur with a standard vehicle, less repairs may be needed, and you may have fewer routine maintenance costs overall.

Note: Maintenance costs can vary depending on your hybrid’s specific make and model.

3. THEY MAY HAVE A HIGHER RESALE VALUE.

As gas prices rise and hybrid cars grow in popularity, more people are opting for fuel-efficient vehicles. In effect, hybrids have begun to increase in resale value. Should you decide to trade or sell your hybrid car, it’s possible that you may receive a higher return on your initial investment when compared to that of your vehicle’s standard counterpart.

4. “RANGE ANXIETY” MAY NOT BE A PROBLEM.

Range anxiety, or the fear that you won’t have enough charge to make it from point A to point B, is a common concern amongst battery-only electric vehicle owners. Currently, charging stations are being built around the U.S, but they may still be few and far between depending on where you live.

Range anxiety is not a common concern amongst hybrid or PHEV drivers. When the high voltage battery runs low on charge in a hybrid vehicle, the car will rely more on the ICE. This automatic switch can be much more comforting since gas stations are more readily available.

GET HYBRID CAR CARE SERVICES AT FIRESTONE

Despite popular belief, you don’t have to go to the dealership to get the car care services you need for your hybrid vehicle. Our technicians at Firestone Complete Auto Care are ready for the task! From general maintenance to high voltage system repairs (at select stores), we’ve got you covered. Visit your nearest location today, and we’ll get your ride back to driving like new.

With full battery electric vehicles stuck at the high end of the market, automakers are opting to go with more cost-friendly hybrids, replete with all their internal combustion engine “junk.”

Hybrid Vehicles: The WORST of Both Worlds?

With full battery electric vehicles stuck at the high end of the market, automakers are opting to go with more cost-friendly hybrids, replete with all their internal combustion engine “junk.”

Initially, I was ecstatic when automakers started announcing plans for the electrification of their fleets, most with the promise of total completion in 3-5 years. However, excitement quickly faded when I learned that near-term plans are focused on creating various hybrid versions of existing vehicles.

Therefore, new full battery electric vehicles (BEVs) will largely exist at the high end of the market—e.g., the all-electric Jaguar I-PACE: Base MSRP from $69,500, 240-mile range advertised (Jaguar USA, 2018). On the other hand, hybrids will flood the mass market—e.g., the 2018 Ford Fusion Energi: Base MSRP from $33,120, 21-mile all-electric range; and the 2018 Toyota Prius Prime: Base MSRP $27,100, 25-mile all-electric range) (Ayre, 2018)

I’m not excited about hybrids because they are an exercise in design compromise. A hybrid powertrain includes both internal combustion and electric-energy-generation components, which substantially increases vehicle complexity. In addition, many types of hybrid powertrain/drivetrain compositions are being developed concurrently—from mild hybrid to full hybrid to plug-in hybrids—each with multiple variants in terms of electric powertrain integration strategies (Fig. 1).

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1. Spectrum of “electrified” hybrid powertrain variants between an internal combustion engine and a battery electric vehicle.

With a hybrid, engineers must still incorporate all the internal-combustion-engine (ICE) components with their corresponding design constraints. Thus, they cannot take full advantage of the design freedoms provided by an all-electric powertrain design. A hybrid vehicle will additionally require more processing power and software control sophistication to manage the dynamic ICE and electric powertrain interfaces.

Tested by Test Needs

During the verification and validation process, the test engineers will deal not only with the electric powertrain AND the ICE powertrain, but with the added complexity of tight integration and interactions between the two systems (Fig. 2). Consider how Subaru tested its ECU to meet thorough test coverage needs for difficult-to-replicate test cases, such as motor runaway due to a loss of traction on icy roads.

The design complexity of integrating two powertrain technologies in one vehicle results in increased testing needs, both in terms of methodology and coverage, which ultimately increases overall test costs. When it comes to design complexity and testing, it’s the worst of both worlds. BEVs have a much simpler powertrain with fewer moving components, less failure points, and lower maintenance costs. Eliminating the ICE components will reduce testing requirements and decrease overall complexity to a level lower than the ICE-only era.

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2. Powertrain and test complexity for powertrain designs.

What’s the Holdup with Full BEVs?

Why, then, are automakers not jumping all-in on full BEVs? The technology is superior—simpler powertrains with far fewer components. The environmental implications are obvious—zero emissions. Let’s not forget that instantaneously available full torque from the jump makes them more fun to drive. Eliminating the ICE components allows for so much more design freedom!

The culprits are cost and infrastructure. The additional cost of key attributes such as range and battery-charge time simply aren’t at a level where they are financially viable for the mass-market segment. UBS research estimates that GM loses $7,400 on every mass market targeted Bolt sold.

The financial angle is why automakers with aspirations for all-electric vehicles will target the high end of the market. Show me the money! Conceptually, this will allow them to profitably drive innovation and development on their BEV platforms, which will (hopefully) result in more efficient designs, drive the price of the technology down (currently battery pack costs are estimated to be decreasing at 15% year over year), economies of scale will kick in, and the all-electric vehicle will make as much financial cents as it does technology sense.

As we progress towards that time, governments around the world are implementing regulations for reduced or eliminated emissions, increased fuel economy, and even mandates for prohibiting ICE-only vehicles before full BEVs make mass-market sense. What’s an automotive OEM exec to do? Ah! Hybrids! These will bring increased fuel economy and efficiency, and lower fleet emissions. Unlike the current losses endured on Chevy Bolt and Tesla Model 3 sales, the financials work out on the positive side. And the technology seems like it’ll check all the boxes on the “balanced vehicle design” attribute checklist.

The promise of an “all-electric fleet” really means releasing varying types of hybrid technology and working on a few high-end niche-market all-electric BEVs while waiting for the economics to improve. You can’t blame the automaker executives. Between the intense competitiveness of the market, government mandates, and projections on cost-effectiveness of mass-market EV technology that delivers on key attributes, I’d be making hybrids, too. And that’s why, frustrating as it is for the design and test engineers on the BEV bandwagon, we will have to wade through this hybrid mess before seeing real BEV mass-market adoption.

Better with BEV

Once automakers make the move to full BEVs, they can get rid of all that ICE junk (transmission, belts, the engine). They can shift around the center of gravity by putting the battery pack in the floor. They can evolve structural integrity and rigidity in new and interesting ways. They can give us the fun characteristics of electric-motor powertrains, such as my personal favorite—full torque from standstill. They can put in full braking regen systems and a funky single-pedal design (a colleague said it only took about a week to get used to it in the new 2018 Nissan Leaf…and now he even likes it). The list goes on.

With BEVs, automakers have levers to pull that don’t yet exist, which is why they must make nice with an ICE in the hybrid use case. The design engineers must be looking forward to the death of the hybrid. And the test engineers probably can’t wait either.

BEVs are where it’s at. Let’s get through the hybrid phase as quickly as we can, shall we? Then we can focus on all of the exciting innovations possible with the wondrous all-electric powertrain.

Choosing an Eco-friendly Vehicle: Hybrid vs. Electric Cars

Anyone in the market for an eco-friendly vehicle might be wondering about the difference in hybrid vs. electric cars. Likewise, if you’re a property manager, landlord or developer looking to offer EV charging stations on your property, you may be wondering if the new lines of plug-in hybrids represent a new customer base for your EV charging station infrastructure.

The short answer to that question is: Yes. Plug-in hybrid electric vehicles, or PHEVs, can charge through the same 240V charging station that other EVs use. On the other hand, hybrids that don’t plug in draw their battery power from the engine and when the battery is drained, the car simply switches to gas power.

Let’s look at some of the other differences in hybrid vs. electric vehicles, including the older hybrids and new plug-in hybrids offered by manufacturers such as Toyota, Honda and Hyundai.

How Does an Electric Vehicle Work?

While conventional gasoline-powered vehicles (sometimes called internal combustion engines (ICE)) run on gasoline that emits carbon monoxide and other gases into the environment, EVs burn fewer and cleaner emissions per mile. If you use solar power to generate electricity for your EV charging station, you can reduce the carbon footprint of running an EV down to virtually zero.

Electric cars store their energy in a lithium-ion battery, which powers an electric engine. A single-speed transmission sends power from the motor to the wheels, allowing the car to move. In general, EVs have fewer parts than their counterpart ICE vehicles. They also have fewer components than hybrid vehicles or plug-in hybrids, making them an eco-friendly choice on several levels.

Understanding EV Maintenance

Since EVs don’t use oil or transmission fluid, they require less frequent maintenance than ICE vehicles or hybrids. They also often use a system called regenerative braking to stop, which decelerates the car as soon as you remove your foot from the gas pedal. This reduces wear and tear on the brake pads and also helps recharge the vehicle to provide longer range.

Instead of scheduling oil changes and fluid and brake checks every 5,000 miles, EV owners should schedule a routine “check-up” every 7,500 miles. This service should include:

-Tire rotation.

-Check coolant levels.

-Visual inspection for fluid leaks.

-Inspect power steering and drive shafts for wear, leaks or damage.

-Check the vehicle safety system.

-Inspect the accelerator pedal, gas struts, brakes and other components for signs of wear or damage.

How Do Hybrid Cars Work?

Hybrid vehicles have two engines, the spark-plug ignited internal combustion engine, and an electric traction motor powered by a lithium-ion battery similar to the one in EVs, but with a smaller capacity. Like EVs, hybrid electric vehicles use that battery to power the engine and move the drivetrain — but only under certain circumstances. Hybrid vehicles rely on an internal combustion engine for the majority of their driving.

Hybrid car batteries hold a much smaller charge than an EV, and the battery is charged when the gas engine runs and also through regenerative braking. This helps hybrid cars get better gas mileage in traffic, which is the opposite of fully gas-powered vehicles, which suffer lower mileage on busy city streets and can achieve better fuel economy while cruising on the highway at a steady speed.

What Are the Benefits of Plug-In Hybrid Vehicles?

While hybrid vehicles typically only travel 10 to 15 miles on a single battery charge before the ICE motor kicks in, plug-in hybrid vehicles extend that range to as much as 60 miles on a single charge. In urban driving, when the PHEV has a chance to recharge through regenerative braking, the range may be longer. Drivers can use a PHEV on a short trip without tapping into their gas tank at all, making it the perfect car for someone who drives short distances and has access to a charger either through a local EV charging station or in their home.

Plug-in hybrids also qualify for the EV tax credit, which means owners can claim a refundable tax credit of up to $7,500, making plug-in hybrids an affordable choice over many EVs on the market.

Hybrid vs. Electric: Which Is Greener?

If you’re comparing hybrid vs. electric vehicles, EVs will come out ahead as the more sustainable choice. Especially if you use clean solar or wind power for EV charging, you’ll eliminate tapping into fossil fuels to power your car.

Depending on your driving habits, a plug-in hybrid may be as sustainable as an EV. If you only make short trips and then charge the battery to a full charge before your next trip, you won’t burn gas. However, a plug-in hybrid EV still has more components and moving parts that require maintenance, which increases its overall carbon footprint for both manufacturing and ownership.

What Do Hybrid and Electric Vehicles Mean for the EV Charging Industry?

The growth of hybrid electric vehicle sales means an opportunity for landlords, developers and business owners interested in offering EV charging capabilities on their property. As more people drive plug-in vehicles, demand for EV charging stations will grow. Business owners who offer this amenity — either as a value-added service or a perk to customers or tenants — will attract people to their property. Business owners can reap profits from EV charging stations both directly through billing for the service and through increased foot traffic.

Electric Vehicles with EV Connect

As plug-in hybrid technology advances, it could be that PHEVs make earlier hybrids obsolete. If you’re considering a hybrid vs. electric car, consider how far and frequently you drive, the availability of EV charging stations near you, and your budget.

Why Traditional Hybrid Cars Are Becoming Obsolete

To most of us, Toyota’s snazzy Prius hybrid still seems like the cutting edge of cool, the latest and greatest technology in cars. But nine years after the Prius was introduced in the United States, some are calling it obsolete. “The hybrid is yesterday’s technology,” says San Francisco Mayor and recently announced California gubernatorial candidate Gavin Newsom. To be sure, Newsom has a political ax to grind—he’s trying to lure electric-car makers to the Bay Area, which already is home to Tesla Motors, maker of a sexy electric roadster, and Better Place, another startup focused on greentech transportation. But Newsom has a point. A new generation of carmakers is shunning the traditional hybrid format in favor of pure electric powertrains (driven completely by batteries) or “plug-in hybrids.” Indeed, the auto industry is being disrupted by rapid waves of new technology, a phenomenon that feels normal for the folks in Silicon Valley but is perhaps unfamiliar for the folks in Detroit. “We are on the cusp of a period of technical innovation like the automobile industry has never seen,” says Mike Jackson, CEO of AutoNation, the largest U.S. auto retailer. “There will be more change in the next five to 10 years than there was in the last 100.”

The first victim of that rapid change may be the Prius-style hybrid. “The traditional hybrid is an in-between solution as we make the transition from gas engines to plug-in hybrids,” says Henrik Fisker, founder and CEO of Fisker Automotive, an Irvine, Calif.-based company whose new $87,500 sports sedan, called the Karma, uses a plug-in hybrid powertrain. Fisker, a legendary automotive designer who worked at BMW and Ford before striking out on his own, says the Prius-style hybrid is “very complicated” and “doesn’t make sense.” While the Prius delivers 46 miles per gallon, Fisker says the average owner of a Karma will get 100 miles per gallon—and those who rarely travel more than 50 miles at a time will do even better.

That’s because in a traditional hybrid, like the Prius, both the gas engine and the electric motor drive the wheels. In a plug-in hybrid, you have both an electric motor and a gas engine, but only the electric motor powers the wheels. The gas engine only generates electricity to recharge the battery pack. If you don’t travel beyond the range of the battery pack—about 50 miles—the gas engine never starts up, and you run in pure electric mode. In theory, some owners of plug-in hybrids might never use the gas engine at all.

Even the automakers in Detroit are jumping on the plug-in hybrid bandwagon, though they don’t use that name. The Chevrolet Volt (due out in 2011) uses a plug-in hybrid powertrain, but General Motors calls it an “extended-range electric vehicle.” Chrysler calls its forthcoming line of plug-in hybrids (due out in 2013) “range-extended electric vehicles.” Chrysler is also making pure electric cars, like its Dodge Circuit EV roadster, which has no gas engine and can travel only 150 miles before needing a recharge. One thing Chrysler hasn’t announced is a traditional hybrid like the Prius. Ford and GM both make Prius-style hybrids, but they represent a tiny percentage of overall sales.

Others are doing an even more radical rethinking of the automobile. Better Place, in Palo Alto, Calif., intends to operate networks of “switching stations” where owners of pure electric cars can swap out a low battery for one that’s fully charged. You’ll pay for the car the way you pay for a cell phone—some money upfront, and then a monthly subscription fee, based on how many miles you drive. Who knows if it will work? But it’s an example of the kind of innovation that outsiders and newcomers are bringing to the industry.

No surprise: Toyota gets a bit vexed when it hears auto-industry newbies bashing the Prius as outdated. “The fact that the Prius has been around for 10 years does not mean it is old news or obsolete. In fact, it keeps getting better and better,” says John Hanson, a company spokesman, adding that next year’s model will get 50 miles per gallon, up from 46mpg in the current model. The most outdated thing about a Prius is its nickel-metal hydride battery. The new pure electric and plug-in hybrid cars use lithium-ion batteries, which can store more energy. Hanson says Toyota is doing research on lithium-ion batteries, and plans a plug-in hybrid prototype for next year. But he insists that for now its tried-and-true batteries are best, and that lithium ion isn’t ready for prime time. “Battery science is not where it needs to be,” he says.

Prius sales in the U.S. are already slumping—they were down 56 percent in March, in part because of the lousy economy and also because of lower gas prices. Which raises the question of whether any of these new car technologies will succeed as long as gas remains cheap. Jackson, from AutoNation, says we should levy a steep fuel tax and pump the money we raise into new car technologies. That sounds like a great idea. But even hard-core greenies like Newsom don’t dare endorse it. “That requires someone to give up their political future,” he says. “There’s nobility in that. And I’m all for nobility. So I’m looking forward to someone else doing that.”

Which means one thing: like it or not, the dirty old internal-combustion engine probably will remain with us for a good long time.

Gas prices got you wanting an electric or hybrid car? Well, good luck finding one

With gasoline prices topping $4 a gallon, many drivers are looking for a car that will go farther on a gallon of gas, or maybe one that doesn’t use gasoline at all.

Finding such a car, though, is not easy.

Electric cars and gas-electric hybrids are in short supply, and prices have been climbing rapidly. Smaller gasoline-powered cars are also scarce, as automakers have focused on building more lucrative pickup trucks and SUVs.

Take Lori Silvia, a landscape designer in Middletown, R.I., who’s looking to replace her 2008 Ford Explorer.

She’d like a vehicle that gets better gas mileage but that can also accommodate her gardening tools, her dog and her stand-up paddleboard.

“I just like the feeling of something big and heavy,” Silvia says. “I come from a family of small women, and we’ve all driven enormous cars.”

But as of now, she’s out of luck.

“I would love a hybrid SUV someday,” Silvia says. “But right now, I don’t feel like I can afford it.”

America’s love affair with SUVs and pickup trucks

SUVs and pickup trucks accounted for more than three out of four vehicles sold in the U.S. last year.

But consumers have become more mindful about fuel economy now that gasoline prices have surged to a record high, not adjusted for inflation.

Compact, gasoline-powered cars are typically less expensive and get better gas mileage, but supplies are tight.

That’s because carmakers have prioritized building larger, more profitable vehicles as they have struggled with a shortage of semiconductors.

“If you’re General Motors, you’d rather make a big SUV,” says Pat Ryan, CEO of the car-buying app CoPilot. “A big Suburban might make you $10,000. There’s no way to make $10,000 on a $25,000 car.”

Dealers say they are still seeing strong sales of SUVs and pickup trucks, although they are on the lookout for any big shift in consumer demand.

“In previous times, when gas [prices] spiked, people reacted quickly,” says Pete Swenson, senior vice president at Walser Automotive Group, which runs a string of dealerships in Minnesota, Kansas and Illinois.

“And then when gas went back down, it seems like they switched back,” Swenson adds.

But interest in electric cars is rising

Americans are also increasingly looking at the option of going electric.

Zoe Wise, for example, is giving more weight to her husband’s desire for an electric car, now that they’re paying $4.59 for gasoline in Anchorage, Alaska.

“I always thought that’s a little bit of a luxury. I don’t know if that’s something we need to get,” Wise says about electric cars. “But now we’re looking at it a little bit more seriously.”

The couple is currently sharing a single subcompact car: a 2008 Toyota Matrix.

Wise is encouraged that the state of Alaska is planning to build a string of vehicle-charging stations on the highway linking Anchorage with Fairbanks.

But finding an electric vehicle is also tough, despite the rising interest.

Electric vehicles only make up just over 4% of U.S. sales at the moment, even as automakers are racing to produce electric versions of their current models or are introducing new ones.

The upfront cost of electric vehicles is also high.

Surging demand has pushed the price of used Teslas to $63,000 — a jump of $1,700 in a single week, according to data from the CoPilot app.

“There’s a ton of demand in the market, but there just isn’t the supply,” says Ryan, the CoPilot CEO.

Used SUVs, on the other hand, have dropped in price by an average of $862 over the last month.

You can still buy an electric car

Still, it’s possible to get an electric vehicle. It just requires some patience.

When Marlene Dempster’s Audi died last month, she went looking for a replacement, without much success.

“It was so frustrating,” Dempster says of the limited inventory of new cars. “I turned to try to find a used one, and that was even worse. Almost $50,000 for a three-year-old car? The used market is absolutely off the charts right now.”

Then her neighbor got a new Tesla. Dempster took one drive in it and immediately ordered her own electric vehicle.

“Oh, it’s amazing what those cars can do,” Dempster says with a laugh. “The torque is amazing. And I just feel really good about not using petroleum.”

Dempster felt even better a few weeks later, when the price of gasoline in Ventura, Calif., where she lives, soared to nearly $6 a gallon.

“Since I ordered my Tesla, the down payment has doubled and the price has gone up several thousand dollars,” Dempster says.

She’s not driving it yet though: She expects to take delivery of the car in about two months.

Conclusion

Are they getting rid of hybrid cars?

The sale of new hybrid cars will come to an end in 2035, just five years after their petrol and diesel counterparts. This could be partially due to new research showing that they may not be quite as environmentally friendly as once thought.

Why are there no hybrid cars available?

Electric cars and gas-electric hybrids are in short supply, and prices have been climbing rapidly. Smaller gasoline-powered cars are also scarce, as automakers have focused on building more lucrative pickup trucks and SUVs.

While it doesn’t seem like their is a concerted effort to sideline hybrids, there appears to be an outright shortage of products of all kinds including cars. I still think hybrids are the way we should go until at least 2050. We can continue to improve them and also we can continue to improve the electric cars as well. Hybrids would give us the time we need to upgrade our power grids. We are talking of hundreds of billions of dollars to get this thing right. We should not rush into making any hasty decisions.

Resources

firestonecompleteautocare.com, “THE PROS AND CONS OF HYBRID VEHICLES.”; electronicdesign.com, “Hybrid Vehicles: The WORST of Both Worlds? With full battery electric vehicles stuck at the high end of the market, automakers are opting to go with more cost-friendly hybrids, replete with all their internal combustion engine ‘junk.’” By Jeff Phillips; researchandmarkets.com, “HYBRID VEHICLE MARKET – GROWTH, TRENDS, COVID-19 IMPACT, AND FORECAST (2022 – 2027).”; evconnect.com, “Choosing an Eco-friendly Vehicle: Hybrid vs. Electric Cars.” By EV Connect; newsweek.com, “Why Traditional Hybrid Cars Are Becoming Obsolete.” By Newsweek Staff; npr.org, “Gas prices got you wanting an electric or hybrid car? Well, good luck finding one.” By Scott Horsley;

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