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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%.
Posted 14 October 2021 by Tom Libby, Associate Director, Loyalty Solutions and Industry Analysis, S&P Global Mobility
