Carmakers introduce new hybrids amid slowing interest in EVs

Electric car sales are soaring in Australia but it’s a different story overseas, where interest has begun to plateau. Some brands are hedging their bets on hybrids.

Car makers are rushing to introduce more hybrid vehicles into the Australian market amid fears that the recent surge in electric car sales could be short-lived.

Local EV sales have more than doubled in the first 11 months of this year, but there are signs globally that the initial surge in interest for the technology could be waning.

Some brands have been forced to throttle back on electric vehicle production overseas due to slowing demand, while others have widened their range of hybrids.

In Australia, the number of hybrids available has grown dramatically in the past two years, as some manufacturers who initially baulked at the technology have embraced it.

Hyundai, Kia, Nissan and Honda have all recently introduced hybrids, while Suzuki also has plans to enter the segment.

The Honda CR-V Hybrid has been voted News Corp’s Car of the Year for 2023. Picture: Thomas Wielecki.

Suzuki Australia Automobile boss Michael Pachota said this week that most buyers weren’t ready for full-scale electric vehicles.

“I see the market more so going down the road to hybrid technology. I think the infrastructure in Australia is definitely not ready yet to go full EV,” Mr Pachota said.

Australian buyers now have a choice of more than 20 petrol electric vehicles and waiting times for the popular Toyota RAV4 hybrid stretch out to two years for some versions.

At the same time, discounts have appeared for some EVs. Tesla, Hyundai and Ford have all dropped the price of selected EVs recently. Ford announced a discount on its Mach-E Mustang before any cars were delivered.

While early adopters were unfazed by the high price of EVs and a lack of public charging infrastructure, mainstream buyers are proving harder to convince.

This year’s Car of the Year field had five electric vehicles, three hybrids and only one conventionally-powered vehicle. Picture: Thomas Wielecki.

Hybrids are appealing to cost-conscious buyers because they are thousands of dollars cheaper than EVs and don’t need to be recharged.

Those advantages came to the fore when the Honda CR-V hybrid was awarded News Corp’s 2023 Car of the Year award overnight.

The CR-V beat a field of five electric cars, two other hybrids and a diesel ute to secure the award.

Ease of ownership and relative value for money compared with electric vehicles were key reasons for the win.

Federal Chamber of Automotive Industries chief executive Tony Weber said the hybrid shift reflected the fact that EVs weren’t yet the answer for many car buyers.

“Batteries are expensive and therefore, EVs are inherently more expensive,” Mr Weber said.

Federal Chamber of Automotive Industries chief executive Tony Weber.

“The advantage of hybrids is that you get a substantial gain against most petrol and diesel engines with a smaller battery which makes that vehicle more affordable relative to an EV.

“The trajectory is to zero emissions. That will be EV. The question is, what is the trajectory?”

Mr Weber said the lack of public charging infrastructure, the relative high price of electric vehicles and the lack of electric alternatives in popular market segments such as utes, meant they weren’t for everyone.

“It’s not just a question of what technology but what technology people can afford. So you’re trying to reduce CO2, but also provide something that is affordable to the masses, and also meets their work and lifestyle needs,” he said.

Hybrids represented “an easy transition” for many.

See full Car of the Year results in the Motoring section.