The global pure electric power growth rate slowed down, multinational automobile enterprises radical electrification transformation strategy this year began to collectively contraction. Under the pull of the irreversible trend of electric power and the cooling demand for pure electric power, the plug-in hybrid model, which is regarded as a transitional technology, has become a track that multinational car companies have cut into.
A few days ago, Jaguar Land Rover announced plans to invest another 3 billion pounds (about RMB 27.58 billion) in its strategic realignment to respond to the slowdown in the pace of pure-electric demand in the global market, and to continue to develop combustion engine and plug-in hybrid models in the market.
Uncertainty in the pure electric market continues to force several automakers to adjust their strategies. Previously, Ford, Volvo, Audi and many other automakers also announced that they will focus on plug-in hybrid models at this stage, and the controversial plug-in hybrids are showing a momentum of release and are becoming a popular choice in the market.
At this stage, the majority of multinational automobile enterprises electrification transformation is in the initial stage, the three electric system there are still problems have not yet been resolved, replenishment, range anxiety, customer loyalty to the pure electric car is declining, both range, travel economy, tram comfortable plug-in hybrid has become a better travel solution.
Demand determines input. A number of multinational car companies ambitious electric vehicle development goals also began to switch direction, focusing on plug-in tilt, have increased investment, layout track. General Motors delayed the release of the Buick brand’s first electric vehicle, which was originally planned to be launched this year, and postponed the start of production at its electric truck plant in Michigan to mid-2026.
GM CEO Mary Barra believes that due to the slowdown in demand for electric vehicles, the company will not be able to achieve the goal of producing 1 million electric vehicles by the end of 2025, and future electric vehicle plans will be flexibly adjusted according to demand. In January, Mary Barra announced on an investor conference call that the company plans to “introduce plug-in hybrid technology in some of its models in the North American market.”
Another U.S. auto giant, Ford, had announced in 2021 that it would fully electrify the European market by 2030. Facing reality, however, the company admitted in the first half of the year that its electrification plans were too aggressive, so it has begun to reevaluate the strategy and move towards developing new hybrids. In the short term, developing the hybrid vehicle business has become a top priority for Ford, which is now significantly increasing the production and sales of its hybrid models.
Martin Sander of Ford’s European passenger car business unit said: “Demand for pure electric vehicles is lower than expected. In contrast, European consumer demand for products such as plug-in hybrids and gas-electric hybrids has been stronger. As a result, we will continue to offer models with internal combustion engines beyond 2030 if there is consumer demand.” As planned, Ford’s hybrid sales will increase by 40 percent this year and quadruple over the next few years.
Volvo has also put on hold its goal of fully electrifying the brand by 2030 in favor of developing hybrids. Volvo Cars CEO Jim Rowan has said at a quarterly investor online conference, “[Hybrids] provide a solid bridge for our customers who are not yet ready to move to full electrification.”
Luxury brands Audi and Mercedes-Benz are also more bullish on the prospects of the plug-in hybrid car market. Audi said it will expand and upgrade its hybrid lineup in the coming years. At the same time, it will retain a dual-line layout of fuel and electric vehicles in key model segments; Mercedes-Benz believes that plug-in hybrids will remain important for many years to come.
Plug-in hybrids, once controversial and defined as a “transitional” technology, have gradually become a mainstream technology promoted by multinational automakers, as it is not yet clear when the endgame of pure electric power will arrive. As the global pure electric market slows down, it seems that plug-in hybrids are just beginning to take off.