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The most popular cars of 2024: It was the year of the hybrid.

30 December 2024 at 01:12
Cars sit on the lot at the Howdy Honda dealership.
Honda takes two spots in the top 10 this year.

Brandon Bell/Getty Images

  • Hybrids ruled the roost in 2024.
  • Some of the most popular cars in 2024 also have the highest share of hybrid sales.
  • Despite a tough year for EVs, the Tesla Model Y makes the top five.

Once thought to be a dying segment, hybrid electric-gas cars had their best year ever in 2024.

A shift in the green car buyer base from wealthy early adopters to more frugal, practical shoppers gave hybrids new life. This new swath of buyers was not ready to make the jump to a fully electric car, said Ivan Drury, an automotive analyst for the car-shopping website Edmunds.

"Hybrids this year became an extremely easy default decision for someone who doesn't want to go full electric but wants basically 70% or 80% of benefits," Drury said in an interview. "These cars come with almost none of the extra costs or hassle in the sense that disrupting your lifestyle."

The popularity of these models is reflected in the top 10 best sellers, according to data provided by Edmunds. The top three β€” Ford's F-150 pickup truck, Toyota's RAV4 SUV, and Honda's CR-V β€” all have hybrid options that did especially well this year.

For example, about half of all RAV4 and CR-V sales are hybrids, according to Edmunds. Meanwhile, Ford has lauded the success of the F-150 hybrid this year as these vehicles make up more of the Blue Oval's sales.

Vehicle affordability also greatly influenced the popularity of hybrids this year, with models like the Honda Civic gaining in popularity.

"Customers recognized that this is a proven technology that the most trusted car companies have already been making," Drury said. "It's a win-win for anyone wary of EVs and shut out by higher interest rates this year."

1. Ford F-150
2024 Ford F-150 Platinum
2024 Ford F-150 Platinum

Ford Motor Co

The No. 1 spot is never a question. For the 47th consecutive year, the F-150 pickup truck is the top-selling car in America.

Ford has leaned heavily into hybrid demand this year, and the F-150 is no exception. Due to the popularity of the Pro-Power Onboard feature, which turns your hybrid into a mobile generator, the company has said that about 20% of buyers choose the hybrid version.

2. Toyota RAV4
A blue 2024 Toyota RAV4 Hybrid in XSE trim.
The 2024 Toyota RAV4 Hybrid XSE

Toyota

Toyota has sold more than 430,000 RAV4s so far in 2024, about half of which are hybrids.

An early leader in hybrid technology, Toyota has been proven right this year in its bet on these partially electrified cars.

3. Honda CR-V
2023 Honda CR-V Sport Touring
2023 Honda CR-V Sport Touring

Honda

The Honda CR-V, which also has a highly popular hybrid option, moved up one spot this year, knocking Chevrolet's pickup truck out of the top three.

4. Chevrolet Silverado 1500
Chevy Silverado
A Chevrolet Silverado 1500

Cheverolet

Chevrolet's profit-driving Silverado 1500 pickup truck is still a highly popular car, commanding 2.5% of the US market in 2024.

Chevrolet also released a fully electric version of the Silverado 1500 this year, but it does not currently sell a hybrid model. GM had previously planned to skip hybrid models in North America but reversed those plans earlier this year.

5. Tesla Model Y
Tesla Model Y
A Tesla Model Y on display in a showroom.

picture alliance/Getty

Tesla's most popular car rounds out this year's top five, with an estimated 336,833 units sold so far this year.

Tesla had a tough year as the EV market faced upheaval, and price cuts alone weren't enough to stoke demand. The affordable Model Y bucks this trend, and Tesla investors are hopeful more affordable models will carry Elon Musk's automaker through the coming years.

6. Toyota Corolla
2025 Toyota Corolla Hybrid
2025 Toyota Corolla Hybrid

Toyota

Much has been made of the dying sedan segment, but Toyota and Honda continue to find success with these reliable vehicles.

The Toyota Corolla still accounts for more than 2% of the entire US market, proving a continued interest in affordable models, Drury said.

7. Toyota Camry
The left front corner of a blue 2025 Toyota Camry XSE AWD hybrid sedan parked in front of a row of homes.
The 2025 Toyota Camry XSE AWD hybrid sedan.

Benjamin Zhang/Business Insider

Toyota's Camry went exclusively hybrid for the 2025 model year. It also comes in a hatchback body style, which helps bolster the nameplate's popularity.

8. Nissan Rogue
The driver's side of a blue 2024 Nissan Rogue SL SUV.
The Nissan Rogue SL.

Benjamin Zhang/Business Insider

The Nissan Rogue is an outlier on the list as one of the only SUVs without a hybrid option.

Nissan, which has struggled with demand overall this year, is considering a tie-up with hybrid leader Honda.

9. Honda Civic
The right front corner of a blue 2025 Honda Civic Hatchback Sport Touring Hybrid parked in a parking deck.
The 2025 Honda Civic Hatchback Sport Touring Hybrid.

Honda

The Honda Civic jumped seven spots this year to eke its way into the top 10. The rise of this reliable sedan, with a starting price below $30,000, is a good example of car shoppers' shifting preferences in 2024, according to Drury.

10. Chevrolet Equinox
The left front side of a red 2025 Chevrolet Equinox RS SUV parked on the street.
The 2025 Chevrolet Equinox RS SUV in Radiant Red Tintcoat.

Benjamin Zhang/Business Insider

The Chevrolet Equinox also jumped a few spots this year to make its way into the top 10. Starting at $28,600, this Chevy crossover sold about 206,100 units this year to capture 1.4% of the US market.

Chevrolet recognizes the popularity of this nameplate, choosing it as one of the first to electrify in 2024.

Read the original article on Business Insider

Car dealers say a Nissan-Honda merger would help solve a big problem: Customers want hybrids.

23 December 2024 at 05:23
Nissan dealers are desperate for hybrids as they lose customers to Honda and Toyota.
Nissan dealers are desperate for hybrids. They say they're losing customers to Honda and Toyota.

Scott Olson/Getty Images

A tie-up between Nissan and Honda could solve one big problem for Nissan: a lack of hybrids.

That's what dealers who spoke with Business Insider said last week amid reports that the Japanese automakers are in talks to create a new global auto goliath. Now, this week, the automakers have confirmed the chatter β€” saying they're indeed in official merger talks. Mitsubishi Motors also is involved in the talks, the Monday statement from the companies said.

Nissan is one of few car manufacturers in the US without a hybrid or plug-in hybrid offering, despite taking an early lead in EV sales with the Leaf in 2010.

Green car shoppers have turned away from EVs in favor of hybrid models this year, leaving Nissan with unpopular and unprofitable battery-powered offerings in the Leaf and Ariya SUV.

Nissan dealers have dealt with slumping sales all year, particularly for the brand's top seller, the Rogue. Once a segment leader, sales of the Rogue fell 10% through the first nine months of the year compared to the same period last year, according to company data.

And dealers say they're losing customers to Honda and Toyota, which have hybrid versions of their CR-V and RAV4 SUVs.

One dealer with both Nissan and Honda stores says it's "painfully obvious" that Nissan is losing customers to brands with more hybrids. The dealer didn't want to be identified, but Business Insider confirmed his identity.

He said it has become common for a Nissan shopper to migrate to the Honda store after they realize there aren't any hybrids.

Following disappointing sales results in the first quarter, Nissan CEO Makoto Uchida acknowledged the hybrid blind spot, saying during an earnings press conference that until last year, Nissan wasn't able to predict the rapid rise in demand for hybrids. The company has said it is shifting efforts toward hybrid offerings, but dealers and automotive industry experts say that change could take years.

Meanwhile, Honda is riding the hybrid wave this year as customers gravitate toward the hybrid versions of the CR-V SUV and Civic sedan. Just this month, Honda said it has plans to double its global hybrid sales to 1.3 million vehicles by 2030, as it aims to create a "bridge" to EV adoption.

Dealer skepticism over another auto merger

Still, some dealers are wary of yet another global auto merger.

Adam Lee, a dealer in Maine with several major brands, including Nissan, Honda, and Chrylser, said he's grown cynical about promised "synergies" after experiencing several different mergers as a Chrysler dealer.

"Show me a merger where the synergies actually existed, and I'll show you something that doesn't exist," Lee said. "I'm trying to give them the benefit of the doubt, but I tend to be cynical about anything like this."

Chyrsler-owner Stellantis is in the middle of a tough transition right now, as the CEO who led the merger of Fiat Chrysler and PSA stepped down suddenly at the start of the month. Before that, Chrysler lived through a messy marriage with Germany's Daimler in the late 1990s and early 2000s.

Lee said Nissan could probably use some help with hybrids and other plug-in models but argued: "You don't necessarily need to merge to do that."

Read the original article on Business Insider

A hybrid-car comeback is in the making — and it could be great news for your wallet

25 November 2024 at 10:16
Electric Vehicle
Automakers are turning toward hybrid-model production in the coming years as car buyers seek more affordable and efficient EVs.

Cavan Images/Getty Images

  • EV customer bases are changing, so auto executives are investing in more hybrid-focused models.
  • Hybrid EVs can be more practical and affordable than charge-only EVs.
  • This article is part of "Getting Ready for Electric," a series of guides and practical advice for buying your next EV.

Though the electric-vehicle market is having its toughest year yet, battery-powered cars are here to stay.

As EV sales slowed this year, major automakers had to reconsider their lofty goalsΒ and adjust to shifting customer bases.

Automotive executives moved forward with several EV launches this year, with some companies adding more hybrid models β€” cars that industry experts say could become a bridge for future EV owners.

Companies are turning to hybrid models to appeal to a more practical and frugal shopper, as wealthy early EV adopters who fueled years of growth have recently fled the market.

It's clear that the expansion the EV segment enjoyed over the past few years is no longer a guarantee of future growth. But executives insist they're committed to an all-electric future, even at a slower clip and with an updated strategy.

In the coming years, you can expect a greater menu of green vehicles on dealer lots β€” at various price points and with more seamless charging options.

Why more consumers are considering hybrid EVs

Hybrids β€” once thought to be a relic of the pre-Tesla EV market β€” are quickly gaining in popularity as EV demand slows.

Green-car shoppers are increasingly drawn to hybrid cars, which come in plug-in and non-plug-in varieties. These cars offer a stepping stone to full EV adoption, with the safety net of a gas-powered engine to ease range anxiety.

While these vehicles solve a pervasive concern among new EV shoppers, a lack of supply has also driven up the price of these cars, creating an affordability barrier for some shoppers.

Still, companies that stayed in the hybrid market over the past several years are now reaping the benefits of a renewed interest in these cars.

Toyota, which was once criticized for its slow adoption of EV technology, is now enjoying big increases in hybrid sales. That's elevating the brand's cache among green-car shoppers in general, with Toyota often at the top of brand considerations for EV shoppers now.

Ford is also taking this approach. The company has said that Ford's hybrid cars are converting more car buyers than any other segment. More than half of all Ford Maverick pickup truck hybrid buyers are new to the brand.

A strategic shift after EV growing pains

The nascent EV market experienced a demand shift this year: The new generation of shoppers are more frugal and practical than their early-adopter counterparts.

But the market is still growing. J.D. Power said that battery-powered cars accounted for 10.2% of retail sales in the US in September, up by 0.8 percentage points from the same month a year ago.

This growth rate isΒ much slowerΒ than the rates of the past four years.Β EV market share soared from about 2% of retail sales in the 2010s to nearly 8% by the end of 2023, Kelley Blue Book said.

The important distinction here is that demand hasn't dried up β€” it's just changing.

Companies are scrambling to adjust, pulling back production on big, expensive EVs and prioritizing more affordable models. Ford, for example, recently said it would pause production of its F-150 Lightning pickup truck for the rest of the year.

Ford also announced plans in August to replace two electric three-row SUVs with hybrid models. GM promised this year to bring hybrids to the North American market, reversing its full-EV strategy in the region, though the company provided few details about its Stateside hybrid plan.

As companies shuffle the deck, EV launches are expected to slow. S&P Global Mobility expects that about half of the 143 EV launches it's tracking between 2024 and 2026 could be delayed or canceled.

This upheaval is likely to continue after President-elect Donald Trump takes office in January. Trump has been tough on EVs, promising to gut Biden-era legislation designed to support the EV transition.

But it's unclear how much a new administration could undo the Inflation Reduction Act, which includes electric-vehicle tax credits, without Congress's help.

These EV tax credits, which can effectively lower the purchase price of a new car by up to $7,500, have been a specific target of Trump's. As affordability becomes a top barrier to EV adoption, the dissolution of these incentives could lower demand even further.

Tesla CEO Elon Musk has become a close ally of Trump's, which initially gave industry executives and experts hope that the president-elect could soften his EV approach.

However, Musk's stances have largely aligned with Trump's so far, including opposing government subsidies for electric vehicles.

Read the original article on Business Insider

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