Hybrid sales surge as EV adoption cools and automakers bet on practicality

Following the money… and getting 55 miles per gallon. Hybrid vehicles — which use both a gas-fueled engine and an electric motor — have silently accelerated into the hottest cars on the market. US hybrid sales jumped 50% in January and February, significantly outpacing full-electric cars. Hybrid’s are spending just 25 days at dealerships on average, selling nearly three times faster than EVs. As car buyers look to go green but not that green, automakers are betting on old tech — and winning.

• Greenish: Ford and Toyota hedged their EV investments with a hybrid fall-back plan. Ford’s hybrid sales jumped 32% last month and it plans to 4X sales in the next five years. Prius pioneer Toyota forecast record profits this year on the popularity of its hybrids.

• Quietly merging: Four years ago, GM and Volkswagen were saying goodbye to hybrids. Now, GM plans to introduce plug-in hybrids (which can cruise 20 to 40 miles on battery alone) in the US, and Volkswagen’s considering it.

• EV ain’t EZ: As sales growth cools, automakers are downshifting their electric optimism. Carmakers including Ford and GM have put billions in EV investments on ice, and Tesla warned of slower growth this year. Yesterday, EV startup Fisker said it would pause production.

In the Goldilocks lane… Dealers have been begging carmakers for hybrids, citing buyers’ desire for something between gas guzzlers and EVs. Hybrids offer drivers a cheaper option (they cost $42.5K on average last fall, compared to $47.5K for gas cars and $60.5K for EVs). Adding to the hybrid hype: automakers have made ’em sexier. Toyota gave its Prius a sporty upgrade, while Stellantis began offering a plug-in version of its popular Jeep Wrangler.