EVs vs. HEVs vs. PHEVs: Which will dominate the future of the automotive industry?

The global EV market share has grown significantly, rising from 28% in Q1 2023 to 41% in Q3 2024, though growth varies across markets. China’s PHEV market, which has tripled since early 2023, drove much of this increase, with over 3 million EVs sold in Q3 2024, accounting for more than half of global sales. PHEV exports from China also doubled year-on-year, but EU plans to impose tariffs on Chinese imports due to alleged subsidy advantages. In response, some Chinese manufacturers are considering European production to avoid tariffs. In Europe, EVs represented 56% of new registrations in the top five markets in Q3 2024, with hybrids making up 35%. The UK leads these markets with a 20% BEV share, while Norway remains unmatched at 95%. The U.S. market continues to grow steadily, with EV market share exceeding 20% for the first time in Q3 2024. If you’re not prepared to switch to a fully electric vehicle (EV) but still want to lower your carbon footprint, an HEV or PHEV could be a great alternative. Here’s an explanation of the differences between these models.

Battery Electric Vehicles

Battery Electric vehicles (BEVs), once a niche option for eco-conscious drivers, have grown steadily, reaching new adoption milestones each year. By 2030, EVs made up 9% of new car sales in the US, with plug-in hybrids pushing that to over 10%, according to the International Council on Clean Transportation. While some predict a sales plateau as EVs move to the mainstream, they remain popular and have driven increased interest in hybrids. EV technology has also advanced rapidly, with the median range reaching 270 miles in 2023. Most manufacturers provide a home charger, but Tesla stopped in 2033 due to low usage. For faster charging, some install level 2 chargers, which can be subsidized by government rebates. Public fast chargers (level 3) charge most EVs in 20-60 minutes, and the expansion of fast chargers, funded by federal support, continues. All EV makers are adopting Tesla’s charge port, enabling access to over 1,500 superchargers nationwide, but planning charging stops remains crucial as stations are not yet as widespread as gas stations.

Hybrid Electric Vehicles

Hybrids were the first major vehicles to enter the EV market, starting with the global release of the Prius in the early 2000s. These cars combine an internal combustion engine with an electric motor, switching between them to boost fuel efficiency. For instance, when a hybrid car stops, it often runs silently on battery power rather than idling with the gas engine. The internal combustion engine takes over when the car restarts. The use of battery technology with the gas engine offers two main advantages: better fuel efficiency and more power. Unlike EVs or PHEVs, HEVs charge their batteries autonomously using energy from the gas engine. They also use regenerative braking, which captures and stores energy typically lost during braking. With high fuel economy, extra power, and no need to find charging stations, hybrids are a practical choice, although they cost a few hundred or thousand dollars more than regular gas cars. However, owners often recover this extra cost through fuel savings over the vehicle’s lifetime.

Plug-In Hybrid Electric Vehicles

A plug-in hybrid electric vehicle (PHEV) combines features of both an EV and an HEV, running on both gas and battery power. The key difference is that PHEVs can be charged via plug-in chargers, making them more similar to EVs. Most can travel 20-35 miles on electricity alone before switching to a gas engine. Some models, like the Jeep Grand Cherokee 4xe, let you use the gas engine while saving battery power for later. PHEVs can be charged at home or at public stations, offering the benefits of EVs with the added security of a gas tank for longer trips. PHEVs charge faster than full EVs because of their smaller batteries and can recharge during driving via regenerative braking. Many owners rarely use the gas engine for short trips, making PHEVs lower in emissions than hybrids. When used, PHEVs offer great fuel efficiency by combining gas and electric power. Despite their appeal, the higher price of PHEVs makes them less popular than HEVs and BEVs.

In Q3 2024, China’s EV market grew by 33% despite a 9% drop in overall powertrain sales, driven primarily by a 79% surge in PHEV sales and a 15% increase in BEV sales. Combined BEV/PHEV market share exceeded 50%, with over three million units sold. PHEV exports also rose by 110% year-on-year. In Japan, hybrids dominated with a 59% market share in Q3 2024, while BEVs and PHEVs together held just 3%. Hybrid sales grew by 11%, but BEV and PHEV sales dropped by 14% and 35%, respectively. In South Korea, BEV sales rose by 18% and hybrids by 36% in Q3 2024. Market shares for BEVs and hybrids were 11% and 29%, respectively, while PHEVs declined by 15%.

In Q3 2024, EVs dominated the top five European markets (France, Germany, Italy, Spain, UK) with a 56% market share. Hybrids accounted for 35%, driven by mild hybrids becoming standard in many models. Hybrid sales grew 16% year-on-year, with notable growth in France (34%) and Spain (25%). In contrast, BEV and PHEV sales fell by 19% and 8%, respectively, largely due to 45% BEV sales drop in Germany after the termination of subsidies. Despite this, the UK and Spain defied trends, with BEV sales up 20% year-on-year. The UK led the region with a BEV market share of 20% and an overall EV market share of 66%, surpassing other markets. France followed closely with 62%. Norway had the highest BEV market share in Europe at 95%, while Sweden led in PHEVs (21%) and Switzerland in hybrids (35%).

Article by: Asst. Prof. Suwan Juntiwasarakij, Ph.D., Senior Editor & MEGA Tech Facebook Twitter Pinterest