Sales of hybrid vehicles are on the rise globally

Global sales of electric vehicles are increasing due to government policies and stricter emission standards, but hybrid vehicles are seeing a much faster growth. Since 2021, there has been a notable rise in hybrid sales in China, Japan, South Korea, the UK, France, and the US. In India, hybrid penetration has also slightly increased, even though there are fewer hybrid models available compared to electric vehicles.

Government policies and stricter emission standards in various countries are driving annual increases in electric vehicle sales in key global markets, according to the International Energy Agency.

Hybrid vehicles, including strong hybrids and plug-in hybrids, are gaining traction due to the necessity of reducing CO2 emissions, supported by incentives and policy initiatives. Since 2021, sales of hybrid vehicles have steadily increased in major markets such as China, Japan, South Korea, the UK, France, and the US, underscoring the significance of government backing in making this technology more affordable.

China is leading the trend, with hybrid penetration increasing significantly to 19.9% in the first half of 2024, up from 5.3% in 2021. South Korea has also experienced a substantial rise, with hybrid penetration growing to 25.2% from 11.8% during the same period. Other markets are showing similar growth patterns.

In India, while still a relatively small market for electrified vehicles, hybrid penetration has risen to 2.5% in the first half of 2024, compared to 2% in 2023. This figure trails behind that of battery electric vehicles (BEVs), which benefit from a reduced GST rate of 5% and road tax exemptions in several states. Notably, the share of hybrids in India is increasing despite having fewer hybrid models available compared to their electric counterparts