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Many Americans prefer gas-powered vehicles due to their convenience, variety, and established reliability. In contrast, others favor electric cars for their advanced technology, reduced carbon emissions, and impressive speed. The auto industry, however, suggests a compromise for those seeking a combination of both: the plug-in hybrid (PHEV).
Related: What Is a Plug-In Hybrid?
Nevertheless, a recent study indicates that PHEVs are not gaining traction. According to J.D. Power, “Despite extensive marketing efforts and the launch of high-profile new models, PHEV sales are not significantly impacting the overall share of the auto industry.”
What Is a PHEV?
Many people understand the concept of a hybrid vehicle. A plug-in hybrid is akin to a standard hybrid but has a crucial distinction that can change the ownership experience entirely.
A traditional hybrid features both an electric motor and a gasoline engine. It operates on the electric motor up to a maximum speed—typically around 25 mph—before switching to the gasoline engine for higher speeds. The battery recharges through regenerative braking.
Related: Electric Cars, Hybrids, and Plug-in Hybrids Explained
As a result, driving a traditional hybrid feels like using a highly fuel-efficient gas car.
In contrast, a plug-in hybrid utilizes both an electric motor and a gasoline engine but offers the ability to travel at highway speeds and beyond solely on electric power. Its gasoline engine only kicks in when the battery charge is low. Most models can drive between 20 to 40 miles on electric power alone. They recharge their batteries through regenerative braking and can also be plugged into a standard electrical outlet.
This setup allows PHEV drivers to experience electric vehicle (EV) advantages for local driving and rely on gasoline for longer journeys.
In theory, PHEVs should alleviate concerns about range and charging availability. If owners keep their vehicles charged for daily needs, they can maintain a carbon footprint similar to that of an EV user. For longer trips, they can refuel at gas stations, avoiding the need for public charging stations altogether.
Related: Plug-in Hybrid Range – A Chart
It appears to be an optimal solution. So, why isn’t it more popular?
Low Market Share, High Prices, Low Customer Satisfaction
According to J.D. Power, “Despite recent manufacturer efforts to promote PHEVs as a transitional option toward full EV adoption, their market share remains below 2% of the overall automobile market.” In contrast, EVs hold a 9.4% share and traditional hybrids account for another 10.7%.
High prices contribute to this issue. The study reveals that “the average transaction price for a compact SUV PHEV is $48,700,” compared to $37,700 for a traditional hybrid and $36,900 for an EV in the same category.
Customer satisfaction is also lacking, as indicated by the study. J.D. Power measures owner satisfaction on a 1,000-point scale, and PHEVs received an average score of 669. Meanwhile, mainstream EVs scored 716 and luxury EVs scored 738.
Related: Best PHEVs of 2024 and 2025
The report highlights that repair and maintenance expenses are greater for vehicles with dual powertrains. The relative novelty of PHEVs means there are not many older models available to assess long-term ownership costs.
PHEVs also miss the social appeal that some EVs enjoy. “PHEVs generally do not differ significantly in style and design from their gas-powered counterparts and are sold at a considerable premium. Many consumers fail to see a substantial enough difference in the overall ownership experience to feel justified in spending the extra money,” the researchers explain.
Is Anyone Plugging In Their Plug-in?
Experts are uncertain about how many PHEV owners are utilizing their vehicles to their full potential. If they fail to keep their PHEVs charged, the cars function merely as more costly hybrids.
Therefore, it falls to dealers to provide better explanations of these vehicles’ capabilities.
Brent Gruber, executive director of the EV practice at J.D. Power, emphasized to Automotive News that “Dealers are the primary educators in the EV market.” For PHEVs to become a viable option for more American consumers, he argues, “It has to begin with them.”
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