Every year, policy pushes by various governments and higher emission regulations drive electric car sales in important global markets, according to International Energy Agency data.
Hybrid vehicle penetration is increasing at a quicker rate, driven by the desire to reduce CO2 emissions and aided in part by incentives and legislative initiatives. Since 2021, hybrid car sales have consistently increased in China, Japan, Korea, the United Kingdom, France, and the United States, demonstrating the need of government backing in making the technology cost competitive.
China leads the trend, with hybrid penetration nearly quadrupling to 19.9% in the first half of 2024 from 5.3% in 2021. Korea has also had a significant increase, rising from 11.8% to 25.2% over the same time span. Other markets have followed a similar growth pattern.
According to industry sources, India, a relatively small market for electrified vehicles, has seen hybrid adoption increase to 2.5% in the first half of 2024, up from 2% in 2023. The figure trails battery electric vehicle (BEV) penetration by a little margin, despite the latter benefiting from a lower GST rate of 5% and road tax exemption in a few states.
Interestingly, the share of hybrids in the Indian market is increasing, despite the fact that there are far less hybrid cars in the mainstream category than there are EVs.
