New car buyers face an alphabet soup of 'electrified' vehicles as EV sales stall.

• Buyers visiting car dealerships in the near future may face a new challenge: a variety of "electrified" vehicle options.
• With the slower adoption of all-electric vehicles, automakers are increasingly offering hybrid models as an alternative to both EVs and traditional gas-powered engines.
• The electrified vehicle market offers a range of options, each better suited to different customers.

Buying a car has always been straightforward. However, customers visiting dealerships in the near future may face a new obstacle: an array of "electrified" vehicle options.

With the slow adoption of all-electric vehicles in the U.S., automakers are increasingly offering hybrid vehicles as an alternative to EVs and traditional gas-powered engines. This provides customers with more options, but also adds complexity for both automakers and consumers, many of whom are returning to the new vehicle market after years of unprecedented supply chain shortages and record used vehicle prices.

"According to Paul Waatti, director of industry analysis at AutoPacific, while more options in the marketplace are beneficial for consumers, it is crucial that they comprehend the distinctions. There must be greater transparency regarding the meanings of terms and acronyms, as well as the advantages and disadvantages."

Today, a car shopper has a variety of options for vehicles, including traditional internal combustion engine (ICE) vehicles, mild-hybrid electric vehicles (MHEVs), hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), fuel cell electric vehicles (FCEVs), and battery-electric vehicles (BEVs), also known as EVs. Additionally, range-extended electric vehicles (REEVs) will be available later this year, which function as an EV with electric motors powered by a gas engine.

All vehicles except EVs and fuel-cell vehicles have a traditional internal combustion engine with "electrified" technologies to improve performance or fuel economy.

Heather Seymour, a resident of St. Johns, Florida, stated that she conducted extensive research before buying a 2022 Jeep Wrangler Rubicon plug-in hybrid electric vehicle, commonly referred to as a 4xe model.

"Seymour expressed interest in the plug-in hybrid SUV as she wasn't ready to go fully electric. She typically uses the all-electric range of the SUV, except on longer trips. "The more we learned about it, the more we figured out what we wanted," she said."

EV naming

Automakers are not aiding consumers in finding their ideal model by using complex and unfamiliar naming conventions.

While some brands label their all-electric vehicles as "electrified," others reserve that term for hybrids. For instance, Chrysler's Pacifica minivan is a plug-in hybrid labeled as a regular "hybrid," and Toyota markets some of its traditional hybrids as "hybrid EVs." However, Stellantis claims that its REEV vehicles are not PHEVs, despite operating similarly.

Waatti stated that the lack of standardization among automakers leads to confusion among consumers due to the use of different terms.

Some automakers, including Chevrolet, use traditional nameplates for new EVs that have little to no similarities with their gas-powered counterparts, except for the name.

The Jeep brand, owned by Stellantis, employs the "Wagoneer" name for two large gas-powered SUVs and a smaller, all-electric Wagoneer "S" SUV.

Antonio Filosa, CEO of Jeep, stated that he is not concerned about any confusion because the brand has a robust naming history and customers can choose the ideal vehicle based on their requirements.

"Education is necessary, but it provides consumers with many options after completion," he stated in a recent interview. "Ultimately, it benefits the consumer by giving them greater flexibility."

Education is key

Consumer education is a necessity that automotive executives from various countries, including Japan, South Korea, Detroit, and Germany, can all agree upon.

To meet tightening emissions and fuel economy targets, as well as build production scale, reduce prices, and increase profits, automakers must focus on electrifying or all-electric vehicles.

"Kia America VP of Marketing Russell Wager stated earlier this year that the company does not want to force customers into doing something they're not ready for. Instead, the company is focusing on educating its customers."

Kia and its dealerships have created online pages to address common concerns and frequently asked questions about electric vehicles (EVs) and hybrids. These pages cover technical aspects of batteries as well as practical considerations, such as whether it is possible to wash an EV in a car wash (it is).

In 2022, GM launched "EV Live," an online video platform that connects participants with EV specialists and provides information on electric vehicles and charging. Now known as "GM Energy Live," the platform has been updated to offer a more interactive experience.

Its video-based training program, aimed at enhancing customer service, employee engagement, and data collection for dealers and the company, was recently launched by the company for its over 3,000 U.S. franchised dealers.

The training and education of both companies and their dealers about the benefits of vehicles is crucial, according to auto executives.

Jérémie Papin, chair of Americas, stated earlier this year that each customer is unique and what matters most is how the vehicle can benefit them, rather than the technology's functionality.

Consumer adoption

If individuals had more knowledge about EV ownership, 96% of those planning to purchase a vehicle in the next 24 months may be persuaded to consider an EV sooner than a three- to five-year timeframe, according to Cox Automotive.

Both Seymour from Florida and Kevin Storimans from Winnipeg, Canada, leased a Jeep Wrangler 4xe plug-in. They both stated that they weren't ready for an all-electric vehicle, so they opted for the plug-in as a way to save money on fuel and as a potential stepping stone to an EV.

"Storimans, who previously drove a V-8-powered Jeep, stated that PHEVs and electric vehicles offer the best of both worlds, with a gas engine and electric range. However, he advised doing research as there is a lot of information and misinformation available on these vehicles."

On average, consumers spend more time researching electric vehicles (EVs) than traditional gas-powered vehicles, according to Cox Automotive. The company found that about 9 out of 10 EV buyers already have a specific vehicle in mind for purchase before they visit a dealership or order online.

"Stephanie Valdez Streaty, Cox Automotive director of industry insights, stated, "There's a wealth of information available, but it can be challenging to convey. Education is crucial, encompassing awareness, education, and engagement for consumers.""