EV deceleration?

Hybrid car revival?

The reality of the automobile superpower America February 29th 19:07

The shift to EVs (EVs) has rapidly progressed as a powerful means of combating climate change.

However, it has been pointed out that demand has hit a plateau, and American automakers are expressing caution about the future.

On the other hand, sales of hybrid vehicles that use both an engine and a motor are rapidly increasing in sales.

We followed the changes taking place in the automobile superpower nation of America.

(Reporter Takuya Odajima, Washington Bureau)

EV strategy successive reviews

``EVs aren't popular, right?''

When my colleague tried to rent a car at an American rental car company, he was offered an EV.

I wondered why there were still EVs that were supposed to be selling well, and when I asked the staff, they told me that they were actually unpopular.

It goes beyond individual cases.

In January, major car rental company Hertz announced that it would sell its approximately 20,000 EVs and reinvest in gasoline-powered vehicles.

The reason for this is the slump in demand for EVs, and the company expects to increase its lineup of gasoline-powered vehicles, which are in higher demand, and improve profits.

Furthermore, Tesla, which specializes in EVs, revealed in January that its operating profit for the three months ending December 2023 was down nearly 50% compared to the same period last year.

This is due to the fact that competition with other manufacturers has intensified as demand growth has slowed, forcing them to lower prices.

Automakers other than Tesla have also announced plans to reduce investment in EVs.

▽General Motors delays start of EV production by one year at factory in suburban Detroit

▽Ford reviews EV investment totaling $12 billion

Traditional motor show spotlights hybrid cars

I had the opportunity to experience the EV shift modulation firsthand.

The annual Auto Show was held in Washington, D.C. in January.

This traditional event, which began over 100 years ago, has attracted attention to EVs over the past few years, but this year there was a particular increase in interest in hybrid vehicles among visitors.

A woman who is considering purchasing a hybrid car from a Japanese manufacturer said, ``I like the environmentally friendly technology and the ability to save money on gas.I travel about 10 hours to Atlanta or New Hampshire three or four times a year.'' Therefore, EVs, which take a long time to charge, are not an option."

Another man who was carefully checking out another Japanese hybrid car said with a wry smile, ``EVs are worried about charging facilities, and they're still too expensive.''

In fact, demand for hybrid cars is rapidly increasing.

In 2023, sales in the United States will be over 1.24 million units.

This is an increase of 65% compared to the previous year, marking the first increase in two years.

In contrast, EV sales in 2023 will be over 1.07 million units, an increase of 51% compared to the previous year.

Hybrid vehicles outperformed EVs in both sales volume and growth rate.

Regarding this reason, Joe Koch of the auto show organizing organization said, ``The purchase of EVs by early adopters, who are the first to purchase new technologies and products, has stopped,'' pointing out that demand has come to an end.

He added, ``Many consumers feel that EVs have problems with price and charging, and there is a growing tendency to choose hybrid cars, which are more fuel efficient and have greater environmental benefits than gasoline cars.'' Analyzing.

“Hybrid Renaissance”?

A hybrid car is a car that has two sources of power: an engine and an electric motor.

Twenty-seven years ago, in 1997, Toyota Motor Corporation became the first company in the world to begin mass production and sales.

The car's image of being "environmentally friendly" spread, and it quickly became popular, with actors attending the Academy Awards ceremony driving it, and Hollywood stars making it their favorite car.

Ironically, it was climate change action that turned the tide.

Western California, which is a driving force behind America's environmental policy, places emphasis on EVs that do not emit carbon dioxide while driving.

In 2022, regulations were decided to completely ban the sale of new hybrid cars as well as gasoline cars from 2035 onwards, creating a strong headwind for hybrid cars.

In this context, leading American newspapers are running special features on hybrid cars, which are making a comeback.

In an article entitled ``EV Sales Slowdown: Hybrid Renaissance,'' the New York Times wrote, ``Toyota, once a darling of environmental protection with its hybrid technology, has come under widespread criticism for its slow move toward EVs.'' However, the slowdown in EV sales and strong hybrid vehicle sales highlight a new reality.''The tide is changing.''

He then quotes a Toyota North American executive who said, ``At the end of the day, consumers, not manufacturers, drive the industry.''

What is your future focus?

One of the future focuses will be the Biden administration's EV promotion policy.

In order to support the spread of EVs, which are still expensive, the US government has set up a system that provides tax breaks of up to $7,500, or approximately 1.1 million yen, to buyers.

Starting in January, tax benefits will be available at the time of purchase.

Buyers no longer have to wait for next year's tax return and can purchase at a discounted price, but the conditions have become stricter and the cars eligible for tax benefits have been narrowed down.

Due to security concerns, storage batteries produced by companies or groups whose capital is 25% or more from China, Russia, etc. are not covered.

Furthermore, the presidential election in November will determine the situation.

If Mr. Trump, who is skeptical of EVs, regains power, there is a possibility that the EV shift will reverse direction by steering away from the Biden administration's promotion promotion measures.

If that happens, it will inevitably have an impact on EV manufacturers as well.

A strategy that foresees the future of EVs is important

EVs face a barrier to widespread adoption.

However, there is no doubt that the number of units sold is still increasing.

As renewable energy power generation progresses, it will continue to be the cornerstone of climate change countermeasures.

Japanese automakers, who will greatly benefit from the revival of hybrid cars, are also making large investments in EV-related businesses in the United States.

This development requires a strategy to reliably capture future demand, considering how quickly and on what scale it will become popular, while taking into account the current slowdown.

Washington bureau reporter

Takuya Odajima Joined the

bureau in 2003

After working in the Kofu Bureau, Economic Affairs Department, Toyama Bureau, etc., he currently belongs to the Bureau.