Asger Risom
American carmakers once sold plug-in hybrids as the easiest way to ease drivers into an electric future.
Now, that middle ground is shrinking fast, even as electrification itself pushes ahead.
Plug-in hybrid vehicles, long promoted as a compromise between gasoline cars and fully electric vehicles, are rapidly disappearing from U.S. showrooms as automakers scale back or abandon the technology.
Plug-in hybrids, or PHEVs, combine a battery that can be charged from the grid with a conventional gasoline engine. The idea was simple: handle daily driving on electricity while keeping gas for longer trips, easing range anxiety without forcing a full leap to EVs.
After years of uneven demand, that pitch is no longer convincing U.S. manufacturers.
Demand falling fast
Sales data suggests consumers are turning away. According to CarGurus, year-over-year U.S. sales of plug-in hybrids fell 51.8% in January, even as sales of conventional “mild” hybrids rose 12.7%.
Prices have moved in the opposite direction. The average listed price for a plug-in hybrid reached $70,565 in January 2026, up from $62,079 a year earlier, CarGurus data shows.
“Consumers really don’t seem to like them,” Kevin Roberts, director of market intelligence at CarGurus, told Business Insider. “The sales figures are low and declining.”
Automakers pull back
Stellantis has led the retreat, discontinuing or canceling five plug-in hybrid models over the past year, including the Jeep Wrangler 4xe, Jeep Grand Cherokee 4xe, Chrysler Pacifica Hybrid, Alfa Romeo Tonale hybrid, and Dodge Hornet R/T.
The company said it is shifting focus to “more competitive electrified solutions, including hybrid and range-extended vehicles.”
Ford is ending production of the Escape and Lincoln Corsair, including their plug-in hybrid versions, leaving it without any PHEVs in its U.S. lineup. Kia has stopped selling the Niro plug-in hybrid in the U.S., while Volvo has ended domestic production of its S60 and V60 Recharge models as part of lifecycle planning.
As a result, availability of plug-in hybrids on U.S. dealer lots fell nearly 47% over the past year, according to CarGurus.
A costly compromise
Industry analysts say plug-in hybrids may be the least appealing option for automakers themselves.
“It’s the most expensive option out there,” Roberts said. “You have to put in all the hardware for an EV, plus all the hardware for a combustion vehicle, and then add the components to make them work together.”
Stellantis last year reported a $26 billion write-down tied to its broader electrification strategy, which included discontinued plug-in models.
A different electric path
The retreat from plug-in hybrids does not signal a return to gasoline. Automakers continue to invest heavily in fully electric vehicles and conventional hybrids.
At the same time, U.S. manufacturers are pouring money into extended-range electric vehicles, or EREVs. These vehicles run primarily on electric motors but carry small gasoline generators that recharge the battery while driving, offering ranges of 500 miles or more.
Ford plans to build a full-size EREV pickup by 2027. Stellantis’ Ram 1500 will offer an extended-range option this year. Volkswagen’s revived Scout brand has attracted strong early interest in EREV versions of its SUVs and pickups.
Not the end of electrification
Chinese automakers continue to embrace plug-in hybrids as a mass-market solution, but U.S. brands appear to be choosing a more polarized approach: simpler hybrids on one end, fully electric vehicles on the other.
“I still think the long-term trend is toward EVs,” Roberts said. “It’s just going to be a significantly different path.”
Sources: Business Insider, CarGurus
