IHS Markit monthly payment data explain EV challenges and hybrid popularity
It is common knowledge that electric vehicles are more expensive than traditional internal combustion engine (ICE) vehicles, but how much more expensive? And, how about hybrids? A review of IHS Markit's new vehicle registration data and TransUnion financial metrics provide insights into these pricing dynamics. Specifically, IHS Markit reviewed new car and light trucks registered in the seven months from January through July 2021, and the data were filtered for loans with a term of 60 months or greater.
The data, summarized in the two tables shown below, illustrate that electric vehicles are substantially more expensive than gas vehicles when compared to the relationship between hybrids and gas vehicles. Among models available in both electric and gasoline versions, the actual monthly payment for the electric vehicle was 59% higher than the monthly payment for its ICE counterpart.
In contrast, among those vehicles available in hybrid and ICE versions, the hybrid's monthly payment was only 6% higher than the corresponding ICE vehicle payment.
Further, of the 50 models with both hybrid and gasoline registrations in this time period, eleven had hybrid monthly payments below the gasoline monthly payments. Given today's eco-friendly landscape, a combination of a hybrid and a monthly payment below the corresponding ICE vehicle is an attractive proposition. Hybrids' 3 PP July 2021 CYTD year-over-year retail market share jump to 6.3 % illustrates the increased relative appeal of this powertrain.
Lastly, as the hybrid monthly payment declines relative to the ICE monthly payment, the hybrid mix of the model's total new registrations increases. Among those sixteen models with a hybrid monthly payment more than 110% of the gasoline payment, the hybrid mix of total deliveries is 8%, but when the hybrid payment is less than the gasoline version, this metric rises to 13%.
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