By 2031, alternative fuel powertrains will have overtaken gas, with hybrid contributing more than half of the alternative fuel landscape
As the industry moves towards electrification, there are nearly as many strategies to meet CAFE standards as there are automotive brands. One strategy that is being employed rather successfully is using hybrid technology as a bridge to full electrification.
Previously, hybrid volume CYTD was at its highest in 2014, with 190,291 units. It had been falling ever since, down to 149,796 units in 2019. CYTD 2021 hybrid volume is nearly double 2014 volume, with 371,896 units, and is at 6 percent share of the industry (Fig. 1), the highest it has ever been in the last 10 years. It is also more than double the share of EV.
Hybrid to grow to 31 percent by 2033
IHS Markit forecasts indicate that both EV and Hybrid will continue to grow over the next 12-plus years. By 2031, alternative fuel powertrains will have overtaken gas, with hybrid contributing more than half of the alternative fuel landscape. And by 2033, EV will be 26 percent of the industry, while hybrid holds 31 percent share of the industry. (Fig. 1).