BusinessLogrBusinessLogr
  • Home
  • Stocks
  • Finance
  • Business
  • Company
  • Economy
  • Industry
  • Investing
  • Car News
  • Contact Us!
Reading: Long before the combustion engine, the hybrid car is facing obsolescence
Share
Aa
BusinessLogrBusinessLogr
Aa
  • Home
  • Stocks
  • Finance
  • Business
  • Company
  • Economy
  • Industry
  • Investing
  • Car News
  • Contact Us!
Follow US
© 2023 BusinessLogr News Network.
BusinessLogr > Car News > Long before the combustion engine, the hybrid car is facing obsolescence
Car News

Long before the combustion engine, the hybrid car is facing obsolescence

Loknath Das
Last updated: 2017/07/15 at 5:18 PM
Loknath Das Published July 15, 2017
Share
2 Min Read
SHARE

A Ford Fusion Titanium Hybrid autonomous car is displayed during the North American International Auto Show in Detroit

Dying breed? (Reuters/Brendan McDermid)

Hybrid cars are becoming the VCR/DVD-combo players of the automotive world.

Just 2% of US auto sales last year were of cars with both electric motors and internal combustion engines, according to a report published this month by New York-based consulting firm AlixPartners. That’s down from a peak of 3.1% in 2013.

So what’s behind the drop in demand? Technology. Hydraulic fracturing (aka fracking), a drilling method that led to a boom in US oil- and natural-gas production, has driven down the cost of gasoline. Prices at the pump are currently just $2.40 a gallon, according to the US Energy Information Administration, a government statistics agency, a decline of nearly 35% since 2013. Cheap gas has also rekindled Americans’ love of trucks and SUVs.

Meanwhile hybrids, marketed in part as a way for price-conscious consumers to curtail gasoline costs, no longer have as compelling a value proposition.

At the same time, environmentally conscious consumers have more and cheaper options than ever for owning a fully electric car, thanks to improved battery technology that makes it possible to drive EVs over longer distances. (The fracking boom also drove down natural gas prices, which makes electricity cheaper too.)

This month, electric-car company Tesla finally rolled out its mass-market Model 3. Swedish carmaker Volvo last week said it wouldn’t launch any new cars without electric motors, and that it plans to launch fully-electric vehicles between 2019 and 2021, following rival automakers.

To be sure, fully-electric cars account for just 0.5% of US auto sales, according to automotive research firm Edmunds—but that is up from 0.1% five years ago. Consumers’ green-thinking isn’t the only factor either: The US government, as in other nations, provides tax credits to early buyers. (Though once those disappear, often so goes demand.)

Together, hybrids and electric cars are still a tiny part of the overall market—just 3% of US new-car sales—suggesting the internal-combustion death knell is a ways off yet. But it’s coming.

[“Source-qz”]

You Might Also Like

Belfius Protection and the Belgian sovereign asset set to put €13M

What makes the goodwood recovery so damn cool

How 4D imaging radar sensors can be validated

Volvo to locally assemble the XC40 Recharge

‘Buy now, pay later’ will soon affect your credit score in the UK

TAGGED: before, car, combustion, Engine, Facing, hybrid, IS, long, obsolescence, the
Loknath Das July 15, 2017
Share this Article
Facebook Twitter Email Print
Share
Previous Article A Company Helping Farmers Earn a Living Wage Just Landed $400,000
Next Article Sara will rock the industry: Kareena on her Bollywood debut opposite Sushant Singh Rajput

Most Viewed Posts

  • Environmental thematic investing set for strong growth in 2022
  • Second income center in banks
  • T-Mobile Adds Mexico, Canada to Simple Choice Plan
  • Tieghan gerard income in banks
  • 20 Fitness Franchises: Planet Fitness and Beyond

Most Viewed Posts

  • Environmental thematic investing set for strong growth in 2022
  • Second income center in banks
  • T-Mobile Adds Mexico, Canada to Simple Choice Plan
  • Tieghan gerard income in banks
  • 20 Fitness Franchises: Planet Fitness and Beyond

Recent Posts

  • 14 Magnificent Blogs From Large Businesses to Inspire Your Content Marketing
  • Investing in Youth: The Role of Development Banks

© 2023 BusinessLogr News Network.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?