By Dana Hull | Bloomberg
In America’s EV stronghold, another type of vehicle is rapidly gaining ground.
Hybrids accounted for almost one in every four automobiles registered in California in the second quarter, according to newly released data from the California New Car Dealers Association. That was up from a year ago and easily outpaced sales of electric vehicles, which made up 17.8% of the quarter’s total.
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Soaring demand for hybrid cars, which offer both a gas tank and electric motor to improve fuel efficiency, is putting them on pace to surpass annual EV sales in the state for the first time since 2020.
The figures are a stark sign of the shift in car-buying preferences in the US, as affordability concerns, political posturing and the end of federal subsidies have undercut EV demand. Hybrids, meanwhile, have benefited as the war in Iran has pushed gas prices higher. The national average was $4.02 for a gallon of gas as of Tuesday, while California’s is $5.52, according to AAA.
California — the country’s largest market for plug-in vehicles, with a robust charging network — has long been seen as a proxy for America’s EV sector. Registrations of zero-emission vehicles in the state fell 8.2% last quarter from a year prior.
The figures show that buyers are influenced by budgetary concerns and their particular driving needs, Jessie Dosanjh, chairman of the dealers association and owner of Stevens Creek Chevrolet, said in a statement. “Right now that means a lot of hybrids.”
Hybrid models including Toyota Motor Corp.’s Camry and RAV4 and Honda Motor Co.’s CR-V ranked among the top-selling vehicles in the state during the quarter, but an EV — Tesla Inc.’s Model Y — remained No. 1. Indeed, the figures suggest EVs could be poised for a rebound, with overall market share up modestly from a terrible first quarter.
In an effort to boost interest, Governor Gavin Newsom last week announced a plan in partnership with 13 automakers to offer instant rebates to California residents buying or leasing their first zero-emission vehicle. The program seeks to backfill a federal tax credit that was ended by President Donald Trump, with the state offering $3,500 off new EVs or $1,750 off used models.
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