Cloud Theory Report "Charging Ahead: Hybrids Come into
Sharper Focus as EV Aspirations Meet Reality" Outlines Regulatory
Impact on OEM EV, Hybrid Inventory and Sales
GRAND
RAPIDS, Mich., April 29,
2024 /PRNewswire/ -- Changes in environmental
regulatory requirements for the auto industry over the past six
months have shifted focus from Electric Vehicles and created a
pathway for Hybrid Vehicles to gain more market share. These
changes also shift power away from EV leader Tesla to more
Hybrid-focused OEMs.
The findings are part of "Charging Ahead: Hybrids Come into
Sharper Focus as EV Aspirations Meet Reality" by Rick Wainschel, Vice President of Data Science
and Analytics at Cloud Theory.
"Regulatory requirements and dates have eased, with the Biden
Administration slashing EV adoption targets from 67% to 35% by
2032," Wainschel said. "With that shift, OEMs have pulled back on
their investments and reduced their EV scale and scope."
Hybrids have been gaining in inventory share and market share
for the past three years, and these changes will only add to
momentum in this sector. In Q1 2024, year-over-year Hybrid share of
vehicle movement jumped 3.2 percentage points, to 11.6% from 8.4%
in Q1 2023. Electric Vehicle share (excluding Tesla and Rivian)
grew only 1 percentage point from 2.6% in Q1 2023 to 3.6% in Q1
2024. Electric Vehicle inventories (5.5%) outpaced EV market share,
indicating that there is still an oversupply imbalance that was
driven by overproduction as OEMs had moved towards meeting the
prior regulatory standards. Meanwhile, Hybrid inventory share was
significantly less than market share in Q1 2024 (9.3%% vs. 11.6%),
indicating that there is room to grow that sector further.
"The shift from a sustainable future focused on EVs to one
balanced between EVs and Hybrids profoundly changes the competitive
landscape," Wainschel said. "Companies such as Toyota Motor Group,
Hyundai Motor Group, Stellantis, Ford Motor Company and Honda Motor
Company all have well-developed Hybrid lines and now have a more
varied patch to achieve fuel economy goals and regulatory
requirements.
The shift will present a challenge for EV-centric companies such
as Tesla, Rivian and Polestar, which must contend for
consumers--who have expressed reluctance to purchase EVs due to
battery concerns, charging anxiety, and high purchase costs--with
only an EV offering.
"The shift in regulatory focus gives traditional OEMs more
options to meet government standards and to appeal to consumers,"
Wainschel said. "Ford's recently launched 'Your vehicle, your
choice' campaign, for example, opens pathways that EV-specific
rivals can't follow. Trading gas-powered vehicle purchases for
enough Hybrid replacements can help traditional OEMs extend
regulatory demands and timelines even further, thereby reducing
pressure to quickly and unprofitably introduce EVs."
For the complete eBook "Charging Ahead: Hybrids Come into
Sharper Focus as EV Aspirations Meet Reality" download
here.
About Cloud Theory
Cloud Theory is more than a concept. It is the eye of the storm,
where cutting-edge data, software, and artificial intelligence meet
deep industry knowledge and experience. Built for automotive
manufacturers, agencies, and affiliates, Cloud Theory enables our
customers to understand – in real time – the complex competitive
world in which they do business and to make bold decisions that
drive them forward. The combination of billions of data points,
interactive tools, and expert consulting gives our clients the
ability to weather any storm and find their way to clear blue
skies. Learn more at cloudtheory.ai. To learn more about our
entire portfolio of automotive brands,
visit www.advancelocalautomotive.com.
Contact:
Mike DeVilling
mdevilling@westshorepr.com
(248) 875-4207
Or
Jennifer Haun
jhaun@cloudtheory.ai
(716) 994-4256
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SOURCE Cloud Theory