Car manufacturers are placing their bets on hybrids as the transition to electric vehicles decelerates.

Global carmakers are shifting their focus towards hybrid technologies as consumer interest in fully electric vehicles wanes, leading to a resurgence in hybrid vehicle sales. Top executives from companies such as General Motors, Nissan, Hyundai, Volkswagen, and Ford emphasized the need to invest in plug-in hybrids during the Financial Times’ Future of the Car Summit.

The industry has seen a slowdown in electric car sales growth in the US and Europe, prompting carmakers to offer discounts to boost sales. Concerns over inadequate charging infrastructure and high interest rates have dampened consumer enthusiasm for fully electric cars, leading to a shift towards hybrids.

José Muñoz, global president of Hyundai, highlighted the changing consumer preferences, stating that the company is now considering manufacturing hybrids at its new $7.6bn plant in Georgia. This shift in focus comes as Chinese manufacturers roll out cheaper electric vehicles, posing a threat to traditional carmakers.

Ford’s European boss, Martin Sander, emphasized the need for flexibility in addressing shifts in demand, while General Motors announced plans to reintroduce plug-in hybrids to its range. The industry recognizes the importance of developing profitable fully electric cars in the long term, but for now, hybrids offer higher margins and financial stability.

Overall, the industry is adapting to changing consumer preferences and increasing competition from Chinese brands, with a renewed focus on hybrid technologies to bridge the gap between traditional engines and fully electric vehicles. Toyota, a pioneer in hybrid technology, plans to increase spending on new technologies to capitalize on the growing demand for hybrids.