Are plug-in hybrids just an overpriced compromise? no one

A new study reveals why plug-in hybrids struggle to find new customers

Consumers haven’t embraced plug-in hybrids (PHEVs) as well as some automakers had hoped, with many seeing them as a compromise stopgap — a middle-of-the-road solution that combines the best of both worlds. They’re pricier than traditional hybrids and don’t quite match the ownership experience of an all-electric vehicle, leaving many buyers wondering exactly what they’re paying for.

In the United States, plug-in hybrids accounted for only 1.9% of total new car sales as of August. To put this into perspective, electric vehicles account for 9.4% of the total market share, while conventional hybrid vehicles account for 10.7%. It’s not for lack of options – there are currently 41 different plug-in hybrids in the U.S., which is slightly more than the 39 conventional hybrids on sale and only slightly fewer than the 60 electric vehicles on offer.

Read: Nissan Rogue PHEV to launch in 2025, extended-range EVs to follow

So, what is hindering the development of PHEVs? Well, there are a few reasons why plug-in hybrids haven’t taken off. First and foremost is cost. A new study comes from JD Power It was revealed that the average customer transaction price (CFTP) of PHEVs in the compact SUV segment from January to August was US$48,700. That’s significantly more expensive than the average CTFP of $36,900 for a compact electric SUV and the $37,700 average CFTP of a comparable hybrid. Paying more for something that feels like a compromise isn’t exactly a winning value proposition.

Low satisfaction, high costs

Then there’s customer satisfaction—or lack thereof. The latest JD Power U.S. Electric Vehicle Experience Ownership Study paints a bleak picture, with overall plug-in hybrid vehicle satisfaction rating at just 669 on a 1,000-point scale. By comparison, mass-market EVs scored a more commendable 716 points, while premium EVs scored even higher at 738 points.

Part of the dissatisfaction stems from unexpected costs. Many plug-in hybrid owners are finding that the cost of ownership of their vehicles is higher than expected, and that the twin demands of refueling and charging two power sources are more cumbersome than expected. Many consumers also feel like they’re not getting enough for their money when buying a plug-in hybrid, especially since they often don’t look any different than non-hybrid versions of the same model.

READ: Mercedes hybrid owner furious when told $17,000 car needs $20,000 worth of new batteries

“There’s a lot of emphasis on creating intermediate steps for consumers who may not be ready to fully adopt electric vehicles,” Brent Gruber, executive director of JD Power’s electric vehicle business, told Automotive News. “Plug-in hybrid Power cars have their merits for some people, but when you look at the ownership experience, it’s certainly not as positive as the experience of owning a pure electric vehicle.”

The future of plug-in hybrid cars

Ultimately, plug-in hybrids face an uphill battle convincing buyers that the higher price and complexity are worth it. Factor in the sky-high cost of post-warranty battery replacement (a point we’ve highlighted before) and the drastic depreciation that batteries often suffer, and it’s easy to see why many consumers might be inclined to stick with more traditional options.