Kia says hybrids are not a threat to electric cars, but an "ideal path" to electrification

In recent years, global automakers and their suppliers have invested hundreds of billions in the development of new electric vehicles and infrastructure - however, demand for electric cars has slowed down, while interest in hybrids, on the contrary, has sharply increased. Steve Kosowski, Manager of Long-Term Planning and Strategy at Kia Motors America, says that hybrids, with their superior efficiency and low cost, offer consumers an excellent alternative that does not cause range anxiety and helps bridge the gap between ICE vehicles and electric cars. Electric vehicle sales in the US in the first quarter of 2024 fell by more than 15% compared to the previous three months (the first decline since 2020), while hybrids grew by 45.7% from January to March, and plug-ins by a massive 69.7%, according to PWC data (via Business Insider). As a result, some automakers are postponing their plans to completely phase out ICE vehicles. At the same time, Kia, which has released a dozen new BEVs in recent years, including the stylish EV3 SUV in May 2024, sees hybrids as an opportunity to attract potential BEV buyers. "If you look at the market resistance to buying electric vehicles, price is at the top, followed by range and charging infrastructure," Kosowski said. "But if you look at hybrids and PHEVs, the resistance due to price is much lower. Last time I checked, transaction prices for electric and plug-in hybrids were the same, indicating that consumers want to electrify and are willing to pay for it." In the first quarter of 2024, hybrids accounted for about 8.4% of the total car market. The creation of electric vehicles also costs significantly more than ICE vehicles and hybrids. "The cost of materials for electric vehicles is so high that the margin for everyone decreases until it becomes negative," adds Kosowski, noting that with all of that, electric vehicle sales will only continue to grow, especially considering the emissions regulations that countries are introducing today.