Hybrids surge as drivers hesitate on full EV leap

CONSUMER apprehension about making the switch to fully electric vehicles is driving a boom in hybrid car sales, according to the latest industry insights.

The August Startline Used Car Tracker reveals that a significant 63% of dealers believe drivers are keen to embrace electrification but remain wary of committing to a full EV.

This “nervousness” is cited as the primary factor behind the escalating popularity of hybrids, which offer a blend of electric and petrol power. In May, for example, plug-in hybrids rose 31.5% to take nearly 8% of the overall market while hybrid electric vehicles had seen a rise of over 31% by end H1 figures.

Stepping stone to electric

The report also highlights that over half of dealers (52%) see hybrids as a crucial “stepping stone” for consumers on their journey towards full EV adoption. The appeal lies in the familiarity and reassurance of a petrol engine, combined with the benefits of electric power for shorter journeys.

Paul Burgess, CEO of Startline Motor Finance, commented: “It’s clear that consumers see hybrids as a way to navigate the perceived challenges of full EVs, such as range anxiety and charging infrastructure. They offer a practical middle ground until drivers feel ready to ditch petrol or diesel entirely.”

The electric future

While only a small fraction of drivers currently own a hybrid (8%), a significant 39% anticipate their next car to be a hybrid. This figure dips to 30% for the car after next, suggesting a gradual transition towards full EVs.

Interestingly, the data indicates a similar trend for full EVs. Although just 3% of respondents currently own an electric car, 16% expect their next car to be electric, with a jump to 42% for the subsequent vehicle.

Burgess notes: “This data supports the idea of an ownership journey. Many people aren’t comfortable with a full EV now, but they plan to transition via a hybrid. By the time they’re on their car after next, nearly 70% expect to be driving either a hybrid or a full EV. This marks a dramatic shift towards electrification in a relatively short period.”

The Startline Used Car Tracker, compiled monthly for Startline Motor Finance by APD Global Research, surveyed 321 consumers and 58 dealers for this report.

Used hybrids outpace all other fuel types

LATEST INDICTA information supports this consumer shift to hybrids.

Mild Hybrid Electric Vehicles (MHEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) accounted for almost one in three (30.8%) of July’s sales of used cars up to four years old.

This came at the expense of petrol cars: their market share fell by over 10% in just 19 months from 59.8% in January 2023 to 49.4% in July 2024, according to the company’s Market Report.

The market share of EVs meanwhile rose to 9.4% in July as falling prices continued to entice consumers. That means more than four out of every 10 (40.2%) used cars purchased in July were either a hybrid or an EV.

INDICATA said there was further evidence of the growing appeal of EVs: the Audi e-tron and MG ZS EV headed its list of the fastest-selling used cars in July,

Diesel market share meanwhile continued to fall – it was 10.3% in July, the lowest on INDICATA’s record and by the end of the year it is likely to be in the minority as EVs look set to overtake them.

Dean Merritt, Head of Sales, Autorola UK (pictured right), commented: “Drivers have been switching to hybrids increasingly over recent months, especially those that aren’t quite ready to make a move to a full EV.

“Hybrids like EVs are all part of the seismic change that the used market is currently going through, with consumers being given more choice when they purchase their next used car. However, from the evidence in our July report consumers are continuing to embrace this opportunity to move away from traditional ICE cars,” he added.