As EV sales plateau, hybrid sales experience a surge.

Despite being eclipsed by flashy electric vehicles from Tesla and others for years, the hybrid car, which combines a gasoline engine and an electric motor, is once again gaining attention.

The popularity of cars in the U.S. has decreased, according to Edmunds, with the average time it takes for a car to sell on a dealer's lot increasing from 25 days at the beginning of 2023 to 72 days just over a year later. This metric, known as "days to turn," is a good indicator of demand.

The increase in days to turn for EVs is significantly higher than for other vehicle categories, with a nearly threefold jump from 2023 to 52 days to turn. In contrast, internal combustion vehicles only took 34 days to turn in the same time period.

Edmunds data reveals that standard hybrids outperform other categories with a 25-day sale compared to 16 days on the lot.

In February 2024, according to Morgan Stanley, hybrid sales grew five times faster than EV sales.

The Toyota Prius, introduced to the U.S. in 2000, gained popularity among both Hollywood stars and budget-conscious consumers due to its fuel efficiency. Despite its lack of flashiness and luxury, its widespread appeal was remarkable.

Toyota, the world's largest automaker, has been slow to embrace electric vehicles (EVs) compared to its competitors. While other major automakers have aggressively followed suit and introduced EVs, Toyota only sells two EVs, the bZ4X and the Lexus RZ, neither of which are popular.

Environmental groups and pro-EV advocates claim that Toyota has been lobbying to delay the EV revolution it missed out on. Despite having previously experimented with battery-electric vehicles, such as the RAV EV, the company has consistently argued that the transition to full electrification will be gradual and that most consumers are not yet ready for fully electric vehicles.

In late 2021, Toyota announced its plan to release 30 electric vehicle (EV) models by 2030, with an annual sales target of $3.5 million.

Sales of hybrids and plug-ins in Japan increased by nearly 28% in two years, accounting for 30% of the country's automotive market.

Toyota is not the only one capitalizing on hybrid sales.

Hyundai may shift its focus from EVs to hybrids at a planned factory in Georgia, as it announced last year that it would reduce production of some EV models, including the F-150 Lightning electric pickup truck, in favor of more hybrids. Meanwhile, General Motors, whose CEO Mary Barra has long advocated for an "all-electric future," recently announced that the company will reintroduce plug-in hybrids to North America.

According to a white paper published by the International Council on Clean Transportation in 2021, hybrids, despite burning fuel, are not as effective as EVs in reducing greenhouse gases.

Yet, defenders say they are a better short-term solution.

While some plug-ins may have unexpected downsides, such as high sticker prices, low selection, fuel costs, and the costs of maintaining a complex powertrain, it is important to carefully consider these factors before making a purchase.

Watch the video to learn more.