Consumer preference is an ever-evolving aspect of the automotive landscape. Every few years, we see a gradual—and sometimes significant—shift in the makes, models and fuel types that are most sought-after. And while electric vehicles (EVs) continue to be a polarized topic throughout the industry, particularly for shoppers interested in fuel efficiency, practicality, and performance, hybrids appeared to be a more intriguing option through the first quarter of 2024.
According to Experian’s Automotive Market Trends Report: Q1 2024, hybrids accounted for 11.8% of new vehicle registrations, an increase from 8.8% last year. Meanwhile, electric vehicles (EVs) remained at 7.9% year-over-year and gasoline vehicles declined from 80.3% to 77.3% during the same period.
While the appeal of a more fuel-efficient vehicle tops many of consumers wish lists, some people may be hesitant to invest fully into an EV. Whether there are concerns with price, battery life, range, infrastructure, etc., hybrids may be viewed as a comparable alternative for in-market shoppers.
Fuel type by generation
The Greatest Generation had the most hybrid registrations through Q1 2024 at 9.6%. Millennials and Baby Boomers were not far behind, each coming in at 9.2%, while Gen X made up 8.4%.
Interestingly, Millennials led EV registrations at 9.8% this quarter, followed by Gen X (9.0%), Greatest (6.5%), and Baby Boomers (5.7%).
As more consumers shift to alternative fuel types, understanding the demographics and behaviors of these individuals can help automotive professionals strategically tailor their products and services to meet shopper demands.
Vehicle registrations on the rise
Looking at overall vehicle registration trends, new vehicles saw a slight uptick through the first quarter of 2024, reaching 3.9 million, up from 3.7 million the year prior. Data showed used vehicle registrations are rising, as well—going from 9.9 million to 10.1 million year-over-year.
Furthermore, utility vehicles—such as SUVs and CUVs—made up over half of new vehicle registrations through Q1 2024 at 60.1%, up from 57.4% last year. On the other hand, pickup trucks declined from 17.2% to 16.2% and sedans dropped from 16.5% to 15.7% in the same time frame.
Leveraging the rise in vehicle registrations, as well as the most desired models and fuel types is key for automotive professionals as they anticipate shifts in demand and identify market opportunities.
Keeping a close watch and utilizing this information strategically can also position professionals ahead of the curve and help efficiently serve their consumers’ needs in an ever-changing market.
To learn more about vehicle market trends, view the fullAutomotive Market Trends Report: Q1 2024 report on demand.
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