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Hybrid cars had a huge comeback in 2024.
These cars, which use a mix of battery-electric and gas power, emerged as the winner in a year when demand for EVs hit a plateau.
A new group of green-car shoppers flooded the market in 2024, and unlike their wealthy early adopter counterparts, these new consumers are much more practical. The compromise of a hybrid appeals to these shoppers, who tend to be both environmentally conscious and budget-conscious.
This shift toward hybrids was great news for companies like Toyota, which remained steadfast in the hybrid market as others fled to focus on pure EVs. Meanwhile, other companies were left scrambling last year as their expensive plans to phase out gas-powered cars hit a roadblock.
Here's how 2024 became the year of the hybrid car.
In 2024, demand for electric cars pulled back as wealthy early adopters fled the segment.
What automotive executives and industry watchers initially identified as price sensitivity turned out to be a bigger problem for EVs. A different breed of car shoppers started flocking to dealer lots, and they were more drawn to the compromise of a hybrid.
Tesla CEO Elon Musk once blamed the popularity of hybrid cars for the company's poor sales performance in the first half of the year.
Read more about how automakers were forced to rethink their EV plans.
Affordability became a key issue for car shoppers last year as higher interest rates kept shoppers on a budget. Hybrids were often considered a more affordable option, but that rule didn't always hold true.
Massive demand for a specific type of hybrid car, the plug-in hybrid, sent prices of these already expensive models soaring.
Read more about how everyone wanted a plug-in hybrid, and how that demand sent prices soaring.
Greater numbers of average customers were in the market for electric cars last year, and these shoppers weren't as easily swayed as the wealthy early adopters who drove the segment's early growth.
Car companies weren't prepared for this stark drop-off in demand and were stuck slashing prices on their big, expensive EVs while they quickly pivoted to offering more hybrids.
Read more about how automakers over-estimated EV demand.
Sales of hybrid cars took off in the first quarter of last year, benefiting companies like Toyota and Ford. Both of these big-name brands have a wide range of hybrid options, including the more expensive plug-in variety.
The Ford F-150 and Toyota RAV4 were the two most popular cars of 2024. Both saw huge sales increases last year due to interest in their hybrid models, executives have said.
"Hybrids are just rockin'," Toyota Motor North America Sales Chief David Christ said in March.
Read more about how Toyota was right about hybrid cars all along. And how Ford's secret weapon in the fight against Tesla has been hybrids.
While the first wave of early adopters only lasted a few years for EV sellers, this more practical shopper is here to stay — at least for now.
Studies last year showed plenty of interest in pure electric vehicles, but many average consumers will require hybrids as a stepping stone as issues like charging infrastructure and affordability continue to exist.
While companies remain steadfast in their commitment to all-electric futures, several are making hybrids a bigger part of that transition.
Read more about how a hybrid-car comeback is in the making — and it could be great news for your wallet.
