The U.S. hybrid vehicle market is experiencing a clear rebound, fueled by a sharp rise in gasoline prices that is rapidly changing consumer buying habits across the country, according to industry data.
Data from market research firm Cox Automotive showed that hybrid vehicle sales in the country surged in the third quarter, led by substantial gains among Asian automakers.
Korean automaker Hyundai reported a 39-percent year-on-year increase in hybrid sales, while Kia, another Korean automaker, saw its hybrid sales more than double, rising 152 percent.
In contrast, demand for fully electric vehicles has cooled over the past year, with Tesla reporting a 2.1-percent drop in third-quarter deliveries.
Analysts said that due to the impact of geopolitical tensions such as the Iran war, gasoline prices in the United States have soared, making hybrid cars the more affordable option in the long run. While buying a fully electric vehicle would cut gasoline out of the equation entirely, many U.S. consumers are concerned that charging stations are not sufficiently accessible across the country.
According to data from the American Automobile Association (AAA), average U.S. retail regular gasoline prices climbed significantly through September, hovering near multi-year seasonal highs. Meanwhile, diesel costs have surged by roughly 70 percent compared to levels seen before the Iran war.
The mounting expenses for gasoline, diesel, heating, and transportation erode American household purchasing power, tightening family budgets and squeezing real disposable incomes.
Market analysts warned that if energy price pressures fail to ease, consumer confidence could face continued downward pressure in the months ahead.
U.S. hybrid vehicle sales surge as fuel costs rise
