Market Insight: Hybrids leapfrog BEVs

WITH electrification continuing apace in the Australian new-vehicle market, a surprise result in the September quarterly sales numbers was a significant increase in hybrid deliveries, ending a trend toward battery electric vehicles (BEV) selling in higher numbers than other new energy options.

According to data released by the Automobile Association of Australia, sales of hybrids grew significantly in the September quarter to overtake BEVs while deliveries of plug-in hybrids (PHEV) have also sharply increased.

The AAA’s Online Data Index shows that in the three months from July to September, 10.31 per cent of new light vehicles sold (that is, 31,418 vehicles) in Australia were hybrids – up from 6.26 per cent in the March quarter (16,101 sales) and 7.49 per cent (22,212 units) in the June quarter.

Figures supplied by industry statistician VFACTS for the most recent tally (October) also point to a continuing strong hybrid result: 2495 hybrids were sold in October this year compared to 1113 last October.

It means the market share for vehicles exclusively propelled by internal combustion engines (ICE) is slowly declining, down 5.2 per cent in the third quarter compared to sales volume from January to the end of March this year.

Meanwhile, BEV market share eased off in the September quarter, although 5255 more BEVs were sold during Q3 than in the March quarter. 

In the first quarter of this year, BEVs outsold hybrids in five out of eight states and territories. In the second quarter, they led in six jurisdictions. But in the third quarter, hybrids outsold BEVs everywhere except the Australian Capital Territory.

While the number of new models available with a PHEV option increases (such as Mitsubishi’s Eclipse Cross and Outlander, MG HS, Mini Countryman, Audi Q5, and various Volvos, Range Rovers and Peugeots to name but a few) and sales numbers are up, overall PHEV volume remains relatively low.

In the first quarter 1461 such vehicles were sold in Australia, compared with 3211 PHEVs in the third quarter – an increase of 120 per cent.

As for hydrogen fuel cell electric vehicles (FCEVs), given that these are sold into fleets to in effect to test the technology, their sales are understandably very low with just two sold this year, both in the third quarter.

Hybrid sales rose in all states and territories in the third quarter of the year and in all but one vehicle class. Large car hybrid sales fell from seven in the second quarter to three in the third quarter. 

Growth in hybrid sales were high among small passenger cars and small SUVs (up 88.35 per cent and 50.95 per cent respectively). Medium car hybrid sales also grew strongly – up 41.98 per cent.

Medium SUVs are still the best-selling hybrid category – accounting for 37.34 per cent of hybrid sales in quarter three (or 11,731 of 31,418 hybrids sold). Sales in this category rose by 30.21 per cent in the third quarter.

In 2018, a total of 14,328 hybrids were sold in Australia. With two full sales months still to go, Australians have already bought 22,516 hybrids this year.

Australia’s first hybrid was the 2001 Honda Insight, which sold just 45 units here. This model was very soon followed up by the Toyota Prius, which quickly popularised the concept.  

While other brands such as Honda introduced more hybrids in those early years, Toyota has been the most prolific with the technology. It has been reported that nine out of ten hybrid vehicles now sold in Australia are Toyotas. 

The AAA says that the best-selling hybrid on the Australian market is the Toyota RAV4, a model so popular that some buyers still face up to a two-year wait for their order to be filled.