J.D. Power Studies Why People Aren’t Buying Plug-In Hybrids
Despite plug-in hybrid (PHEV) models seeming like they’d be a good compromise between all-electric and combustion vehicles, the latest E-Vision Intelligence Report from JD Power has shown them trailing both in terms of sales volume. While traditional combustion vehicles remain the dominant option for American consumers, battery electric and standard hybrids both eclipse annual PHEV deliveries.
JD Power reported that plug-in hybrid sales are presently stuck below 2 percent of the total new vehicle market. By contrast, standard hybrids lacking a charging port were said to be 10.7 percent with battery only models representing 9.4 percent. While the latter figure seems a little high — Edmunds had EVs holding a 6.8-percent share of the market earlier this year — we’ve yet to see any statistical analysis putting plug-in hybrids above 1.9 percent.
Value seems to be the biggest factor, with PHEVs trending higher MSRPs and maintenance costs than either standard hybrid or battery electric vehicles.
JD Power cited the average customer-facing transaction price for a (compact crossover) PHEV at $48,700. Meanwhile, the typical hybrid model from the same segment averaged around $37,700 whereas a fully electric vehicle was likely to trade closer to $36,900. Despite EVs typically seeing higher factory pricing against hybrids, dealers have surplus inventories that are presently encouraging discounts.
Consumer satisfaction for plug-in hybrids was likewise said to be lacking vs all-electric vehicles. However, the difference between them was relatively modest and all vehicle types have seen declining consumer satisfaction in recent years due largely to the standardization of touchscreen-based infotainment systems and an assumed lapses in quality control. Drivers are similarly perturbed with the amount of data acquisition (see: privacy issues) taking place within modern automobiles.
Reliability is likewise presumed to be lower among plug-in hybrids due to added complexity. They technically need to have all the necessary components to allow them to operate as a traditional hybrid and battery electric vehicle. The above doesn’t necessarily mean every PHEV will be less reliable. But there is certainly more on them to go wrong, should something need to be serviced. They also carry around the heft of a battery (albeit a small one) and this means they tend to burn a little more fuel than other hybrid vehicles.
From JD Power:
By now, it is no secret that the big obstacle keeping shoppers from broad adoption of EVs is range anxiety. Consistently, across every study J.D. Power has conducted to evaluate customer experience with EVs, five of the top 10 reasons people give for rejecting an EV are focused on things like lack of charging station availability, limited driving range, time required to charge, and other charging- and infrastructure-related concerns.
The auto industry’s solution has been something of a compromise. In the past year, virtually every major automaker has made a pivot to PHEVs as a bridge between gasoline-powered vehicles and fully electric vehicles. On paper, it makes a ton of sense. In reality, it’s creating some new challenges.
The real benefit of owning a PHEV is having the ability to lean on the battery for shorter journeys. But this typically ends up being 40 miles or less. That’s certainly sufficient for individuals who do the brunt of their driving in town and the vehicles typically offer solid fuel economy when relying on internal combustion. However, the average American commute is over 26 miles one way — meaning every PHEV that’s presently on sale would exhaust its battery range before its owner made it home for dinner.
That’s not really a problem in itself. But it may leave some drivers deciding that they’re better off buying a fully electric automobile or a hybrid without a charging port when they’re both likely to cost a little less than the PHEV.
Automakers presumably aren’t too thrilled about the above, as they’ve been prioritizing the development of plug-in hybrids as a stepping stone to pure electrics. At present, there are forty one PHEV models available on the market — two more than there are standard hybrid models — and sixty BEVs.
[Images: Toyota; JD Power]
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Consumer advocate tracking industry trends and regulations. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied, he pivoted to writing about cars. Since then, he has become an ardent supporter of the right-to-repair movement, been interviewed about the automotive sector by national broadcasts, participated in a few amateur rallying events, and driven more rental cars than anyone ever should. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and learned to drive by twelve. A contrarian, Matt claims to prefer understeer and motorcycles.
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Surveying preferences means nothing. It's all about where can you plug it in? 79% of people 65 and over own their own home, and it's likely to be a single family home, not a condo. Thats not the car-buying demographic.
Only 38% of 35 and under own their homes, and under 25% live in single family homes. That IS the car buying demographic, but they're well short of their maximum earning years, and just getting by with a mortgage, insurance, repairs, etc.
The market is simply too small for plug-ins, whether hybrid or full electric.
I actually had a deal in place for a PHEV - a Mazda CX-90 - but it turned out to be too big to fit comfortably in my garage, thus making too difficult to charge, so I passed. But from that, I learned the Truth About PHEVs - they're a VERY niche product, and probably always be, because their use case is rather nebulous. Yes, you can run on EV power for 25-30 miles, plug it in at home on a slow charger, and the next day, you're ready to go again. Great in theory, but in practice, a) you still need a home charger, b) you paid a LOT more for the car than you would have for a standard hybrid, and c) you discover the nasty secret of PHEVs, which is that when they're on battery power, they're absolute pigs to drive. Meanwhile, to maintain its' piglike battery-only performance, it still needs to be charged, so you're running into all the (overstated) challenges that BEV owners have, with none of the performance that BEV owners like. To quote King George in "Hamilton": " Awesome. Wow." In the Mazda's case, the PHEV tech was used as a performance enhancer - which worked VERY nicely - but it's the only performance-oriented PHEV out there that doesn't have a Mercedes-level pricetag. So who's the ideal owner here? Far as I can tell, it's someone who doesn't mind doing his 25 mile daily commute in a car that's slow as f*ck, but also wants to take the car on long road trips that would be inconvenient in a BEV. Meanwhile, the MPG Uber Alles buyers are VERY cost conscious - thus the MPG Uber Alles thing - and won't be enthusiastic about spending thousands more to get similar mileage to a standard hybrid. That's why the Volt failed. The tech is great for a narrow slice of buyers, but I think the real star of the PHEV revival show is the same tax credits that many BEVs get.