Strong Hybrid Cars Could Be Up To 7 Times More Popular By 2029, Analysts Predict

It is projected that the market share of strong hybrid cars, which is currently at 2.2 percent, will see a significant rise in the next five years

In the past few years, the Indian automotive landscape has seen a growing acceptance and adoption of strong hybrid vehicles, like the Maruti Grand Vitara and Toyota Innova Hycross. Even with the lack of regulatory support for this electrified technology, CRISIL MI&A (Credit Rating Information Services Of India Limited Market Intelligence & Analytics), an independent data driven research and analytics organization, has projected that the market share of strong hybrid vehicles is expected to increase multi-fold.

According to their data, strong hybrids account for a 2.2 percent market share as of fiscal year 2024. However, this number can shoot up to somewhere between 13 and 16 percent by fiscal year 2029. 

Strong Hybrids Over EVs

The same CRISIL MI&A projection also suggested that the market share of EVs, currently standing at 2.3 percent, can reach 20 percent in FY2029. Battery electric vehicles for private buyers are also not getting the benefit of any central government incentives at this point in time, but the technology is still getting more support globally than hybrids. In light of these two competing technologies, the growth of strong hybrid vehicles holds more importance due to a few factors.

Lower Price Premiums

Firstly, the price jump from ICE (internal combustion engine) models to equivalent EVs is much more than the price jump from ICE to equivalent strong hybrid models. This leads to a higher initial investment for purchasing an EV, which can be hard to recover until and unless you run the car for an unusually high number of kilometres. Meanwhile, strong hybrid cars have a relatively lower price premium over equivalent ICE cars with fewer downsides, making the premium easier to justify.

Easier To Adopt

Switching from ICE to electric vehicles is not only more expensive, it also has some inherent barriers. By choosing an EV, you have to depend on a completely new infrastructure (charging stations), which is still under development, and is not found in every city with acceptable levels of reliability and functionality. Electric vehicles, no matter how premium, tend to leave their owners with range anxiety, and force long journeys to be based on the availability of chargers.

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Since most strong hybrid cars in India do not require separate charging stations, and use the petrol engine to regenerate electric power, they are just as convenient as typical ICE models. Aside from the limited options of plug-in hybrids, strong hybrids do not depend on any infrastructure other than the existing petrol pumps, making them hassle-free, and more reliable for longer journeys. 

More Strong Hybrids Incoming

While ICE cars will eventually become obsolete, strong hybrid vehicles act as a practical medium for the ICE to EV transition. Since the all-electric future is still far away, strong hybrid cars will continue to garner more market share with more options expected to enter the Indian market in the meantime.

Currently, all the strong hybrid mass market cars in India are from Japanese carmakers like Maruti Suzuki, Toyota, and Honda, and these carmakers will be bringing more such models in the coming years. 

Other global brands like Hyundai, Kia, Volkswagen, and MG can also enter the strong hybrid space in the coming years, with cars spanning different segments and price ranges. We can even expect some more plug-in hybrids, like the BMW XM, to enter the market in the premium segment.

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Homegrown carmakers like Tata and Mahindra, which have committed large amounts of time and money to developing their EV portfolios, are not expected to enter the strong hybrid segment. Instead, these brands will contribute to the increasing market share of EVs.

The next few years will be exciting for both strong hybrids and electric vehicles, and we will witness the launch of many cars in both categories. Would you prefer a strong hybrid over an EV for your next car purchase? Let us know in the comments below.

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