Hybrid cars are hot again globally

Hybrid cars are returning to the spotlight as electric-vehicle demand softens amid high gasoline prices, steep vehicle costs, and uneven charging access. In the U.S., hybrids represented about 14% of new car sales last year, up from under 3% in 2020. Spain is even higher, with hybrids making up almost half of new cars, while Japan is above 50%. U.S. demand is projected to more than double over the next decade, and California saw hybrid registrations surpass EVs in the second quarter. Toyota CEO-led remarks via David Christ at Toyota North America cite stronger consumer interest. Automakers also see hybrids as a near-term hedge: Edmunds.com estimates hybrids cost $1,500 to $3,000 more than comparable gasoline models. Toyota’s RAV4 hybrid demand is so strong that some owners resell used for more than they paid new. Separately, analysts expect hybrids to reach up to 40% of global production by 2030, supported by ongoing high-oil-price expectations following the Middle East war.