Hybrid Vehicles Gain Popularity As EV Charging Costs Rise

Hybrid Vehicles Gain Popularity As EV Charging Costs Rise

Hybrid Vehicles Gain Popularity As EV Charging Costs Rise

Recent Deloitte research indicates a rising interest among consumers in hybrids and shows the number of U.S. consumers considering HEVs/PHEVs increased substantially. The study, 2025 Global Automotive Consumer Study, conducted this year, found that 26 percent of U.S. consumers indicated an intent to buy a hybrid vehicle. This marks a 5 percent gain over last year. Interest is growing for these vehicles in contradiction to declining interest for ICE models, which plunged to 62%, and virtually stagnant 5% interest for BEVs. The interest of hybrids has actually been mainly increasing due to price competitiveness, not to mention growing fuel prices. The consumer's need for practical solutions that allow the reduction of emissions without necessarily needing significant charging infrastructure has driven demand for hybrid and range-extender technologies.

As observed by Jody Stidham, a managing director at Deloitte Consulting, this need is the same reason behind the increased interest in hybrid vehicles: consumers are interested in cost-effective solutions that don't need large amounts of charging infrastructure. Consumers are focusing more on lower fuel costs, and the most motivating factor for consumers to adopt electric vehicles is 56% followed by environmental concerns and driving experience that stands at 44% and 36%. However, several challenges persist: nearly half of U.S. consumers say that limited driving range and long times to recharge keep them from switching to electric. Moreover, 44% of consumers are hesitant because electric vehicles cost more.

Although the demand for electric vehicles keeps on increasing, the charging infrastructure might not play a more crucial role in consumer decision-making than assumed. According to the report, 79% of U.S. consumers planning to buy an EV plan to charge their car at home. But only 58% have a dedicated home charger. So, that leaves a need for more affordable home charging solutions. Despite concerns about charging times, 77% of consumers are willing to wait up to 40 minutes to charge their vehicles to 80%.

The report also touches upon the shifting landscape of brand loyalty within the automotive sector. More than half of U.S. consumers (54%) plan to switch brands for their next vehicle, up 3% from last year. The top drivers of this shift are quality (58%), price (53%), and performance (51%). This shift in brand loyalty is no longer a solely U.S.-based trend as global data would indicate that there is a shift in consumers changing brands, mainly in emerging markets, such as China, by 76%, who plan on choosing a different brand. Contrasted with brand loyalty in Japan, where domestic brands are chosen by 76%.

Evolution of Autonomous Vehicle (AV) services is a controversial issue. A significant portion of U.S. consumers, 52%, have raised safety concerns over fully autonomous ride-hailing services in their local areas despite the heightening awareness for automotive technology around the world. However, in India and China, a higher percentage of consumers, 82% and 77%, respectively, believe AI in vehicle systems is beneficial. Younger consumers, including those aged 18-34, are the most open to alternatives to ownership, with 44% of U.S. consumers in that age group being willing to adopt MaaS. For India, that number is at 70%. This is highly indicative of major cultural and infrastructural differences in terms of mobility preference across markets.

As the automotive sector adapts to these changing consumer preferences, connected service ecosystems are becoming increasingly important. While 63% of U.S. respondents consider smartphone integration essential, daily vehicle use patterns also highlight stark contrasts in transportation habits. For example, 49% of U.S. consumers use their vehicles daily, compared to just 25% in South Korea, reflecting the impact of available mass transit systems in different regions.

Deloitte's report underlines a period of profound transformation in the U.S. automotive industry, driven by evolving mobility trends, shifting consumer preferences, and diverse ownership models. As manufacturers seek to meet such changing demands, the importance of maintaining strong consumer relationships and innovating to address infrastructure challenges will only grow. With fluctuating brand loyalties, more accessible home charging solutions, and the ongoing concern of autonomous vehicle services, the automotive industry needs to navigate a rapidly shifting landscape.

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