As electric vehicle (EV) sales soar year after year, it’s easy to forget the progenitor: the hybrid car. The technology isn’t just an important stepping-stone from the internal combustion engine to the electric battery but remains a cheaper, more eco-friendly alternative to the traditional gas guzzler.
The term hybrid vehicle is often lumped together with EVs. However, there’s a key difference: Hybrids contain at least one electric motor and a gasoline engine. Frequently, the system captures energy via regenerative braking, feeding it into the electric motor to run the car. Sometimes the car runs solely off the electric motor, other times just on the gasoline engine, and often they work in conjunction – saving fuel.
Despite their benefits, many see the hybrid’s days as numbered – it’s only a matter of time before EVs surpass it. But is this true? And what is the current state of the US and the global hybrid market as of 2024? That’s what we’re answering below.
Key Insights
- In 2021, some 21 million hybrid vehicles were in use globally.
- The global hybrid vehicle market was valued at $324.92 billion in 2022 and is projected to exceed $1,490 billion, growing at a CAGR of 28.9% from 2023 to 2028. The Asia-Pacific region is currently the fastest-growing market.
- In 2022, hybrid vehicle sales jumped by 76% to 801,550 compared to 2021, making up 5% of all light vehicle sales in the US.
- As of 2022, nearly 7.2 million hybrid vehicles have been sold in the US since their introduction in 1999. This figure places the US as the second largest market for hybrids worldwide after Japan, which has sold 7.51 million units.
- Hybrid car sales in the US between April and June 2022 saw a decrease of 10.2% compared to the same period in 2021. Despite this drop, US hybrid sales had previously risen by 76% between 2021 and 2022, making up 5% of the light vehicle market.
- California leads in overall hybrid sales in the US, followed by New York and Florida. On a per capita basis, the District of Columbia has the largest hybrid vehicle sales share.
- In 2019, hybrids dominated the US electric vehicle market with 400,746 units sold, in contrast to 241,912 units of all EVs sold and 84,732 units of plug-in hybrid EVs sold.
- The Toyota RAV4 is the best-selling hybrid EV in the US as of 2019, with approximately 95,000 units sold. Other popular hybrid models include the Honda Accord, Honda Insight, Kia Niro, and Toyota Highlander.
- In 2021, 19.6% of new passenger cars sold in the European Union were hybrids, a significant increase from 2020, when hybrids only held an 11.9% market share. However, full EVs accounted for 18% of sales in Europe in 2021.
- India is projected to be the biggest hybrid vehicles market by 2028 with an estimated share of 18% of global sales.
- Hybrids have an energy efficiency range between 21% to 40%, compared to 12% to 30% for regular gasoline vehicles.
How Many Hybrid Cars Are There in the US and Worldwide?
In the US, since the first introduction in 1999, almost 7.2 million hybrid vehicles have been sold through 2022. That makes the US the second largest market worldwide after Japan (7.51 million). Up until April 2016, the US comprised around 36% of the global stock of hybrids worldwide. An estimated 21 million hybrid cars were in use globally by 2022.
However, there is some indication of a drop in purchases. While April to June 2022 saw around 245,2000 hybrid electric vehicles sold in the US, this decreased by 10.2% compared to the same period in 2021. Interestingly, that drop comes on the back of a large gain: between 2020 and 2021, US hybrid sales saw a 76% rise, accounting for 5% of the light vehicle market.
In the European Union (EU), 19.6% of new passenger cars sold in 2021 were hybrid electric vehicles. That’s up substantially from 2020 when hybrids commanded an 11.9% market share. Nonetheless, during the same period, full EVs made up 18% of sales, representing the bigger proportion of all-electric vehicles.
What Country Has the Most Hybrid Vehicles?
Japan is the world’s largest market for hybrid vehicles (7.51 million units sold), followed by the United States (7.2 million units sold). Within Europe, as of 2019, Norway and Finland had the highest share of hybrid car sales, followed by Sweden – indeed, the top three were all Nordic. Germany, by contrast, had the lowest shares out of all European countries. Nonetheless, Germany saw a significant rise in plug-in hybrids between 2018 to 2022, from 44,420 units to 565,960 units.
State by state, California leads in overall hybrid sales in the US, followed by New York and Florida. On a per capita basis, the District of Columbia is the biggest. In the first half of 2013, the highest electric car registrations were all located in California: Atherton (19.4%), Los Altos (16.1%), and Santa Monica (15.0%).
What Percentage of Total Vehicles are Hybrids?
In 2022, US sales of hybrid vehicles accounted for 5% of all US light vehicle sales or 801,550 vehicles. Analysts have noted that while many automakers jump straight to full EVs, American consumers are somewhat hesitant about abandoning combustion engines altogether. On a net basis, hybrid vehicles make about 2.3% of total registered vehicles in the US.
Hybrid vehicles, therefore, represent a bridge from one technology to the other, helping to accelerate sales of battery EVs. Indeed, full EVs still only represent 3% of all car sales in the US. It’s a matter of consumer acceptance.
Nonetheless, Toyota alone saw an uptick in sales of hybrids, plug-ins, and fuel cells by 73% to 583,697 – most of the increase came from hybrids.
Hybrid Market Size and Trends
In 2019, hybrid vehicles sold 400,746 units, full EVs sold 241,912 units, and plug-in hybrid EVs sold just 84,732 units. By comparison, 17 million new light vehicles were sold in 2019, according to the Bureau of Transportation.
Nevertheless, despite their impressive performance, the peak of hybrid cars may well have passed. From their inception in the late ’90s, hybrids, fueled by eco-conscious consumers, hybrids saw a rapid uptick in sales till 2007, when 351,071 units were sold.
The financial crisis saw a dent in sales. However, by 2013, sales reached a new all-time (and still unsurpassed) high of 495,535 units. Since then, sales initially dropped but have plateaued in the past half-decade, hovering between 350,000 and 400,000 units.
Globally, the hybrid vehicle market is valued at $324.92 billion and is expected to exceed $1.4 trillion – a CAGR of 28.9% between 2023 and 2028. Currently, the fastest-growing market is the Asia-Pacific region. Much of the demand also comes from developing countries such as Brazil, India, and Mexico due to increasingly stringent emissions regulations. Meanwhile, according to Mordor Intelligence, the complete ban on all polluting vehicles, as in the United Kingdom, will likely favor full EVs in the medium to long term.
China is also a key player in the global hybrid vehicle market. With significant production capabilities and numerous subsidies, Chinese companies saw production of plug-in hybrid vehicles rise 161.6% year on year in 2022.
Best Selling Hybrid Brands
It’s hard to undersell the importance of Toyota, and, in particular, the Toyota Prius, in the success of hybrid vehicles. In the US, the recent plateau in hybrid EV sales could be largely attributed to the decline of Prius sales. Indeed, Prius sales peaked in 2012 and 2013 (223,906 and 222,140, respectively), just as overall sales of hybrids reached a crescendo. Worldwide, the first mass-produced hybrid vehicle sold over 10 million units, helping it overtake Ford as the top-selling automaker in the US.
Another Toyota model has now knocked the Prius off its top spot – although it’s unlikely to outpace its all-time sales. The Toyota RAV4 is presently the best-selling hybrid EV in the US. In 2019, it sold approximately 95,000 units compared to 48,000 Prius and 50,000 Ford Fusion and Milan units. Other popular hybrid models include Honda Accord, Honda Insight, Kia Niro, and Toyota Highlander.
How Efficient Are Hybrid Cars?
Hybrids don’t eliminate fossil fuels. They do minimize fuel consumption, however. Efficiency differs from model to model, but drivers can expect between 21% to 40% of the energy from the fuel to go into movement compared to 12% to 30% for regular gasoline vehicles, according to fueleconomy.gov. EVs, meanwhile, report an energy loss of 15% to 20% versus 64% to 75% for a gasoline engine. EVs, like hybrids, typically rely on regenerative braking to recapture and reuse energy normally lost in braking and while idle.
Price Comparison: Hybrids, Regular, and EVs
Hybrids remain cheaper than EVs, primarily because of the exceedingly high battery cost. The average hybrid vehicle costs between $25,000 to $35,000 – for example, the Honda Insight is available for around $25,000+, and the latest Prius costs roughly $28,000.
Electric cars, on the other hand, all start in the mid $30,000 for the most basic models, e.g., Chevy Bolt. However, for a higher-end Tesla, with a range of 300 miles plus, you can expect to pay $60,000 or more. Greater ranges rely on more battery power which drives up the price of the vehicle.
Nonetheless, regular cars are substantially cheaper than comparable hybrids and EVs. While the average selling price for a new light vehicle was $46,290 in 2022, you can acquire a new regular car for anything from $10,000 plus.
Sources:
- https://www.mordorintelligence.com/industry-reports/hybrid-vehicle-market
- https://www.solarreviews.com/blog/hybrids-versus-electric-cars
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- https://en.wikipedia.org/wiki/Hybrid_electric_vehicles_in_the_United_States
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- https://www.statista.com/statistics/797375/global-hybrid-electric-vehicle-production/
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- https://www.statista.com/statistics/267162/world-plug-in-hybrid-vehicle-sales-by-region/
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- https://fueleconomy.gov/feg/atv-ev.shtml
