Written by: Basant El-Farmawy
With gasoline prices stabilizing at around $4 per gallon, the electric vehicle option emerges as an attractive alternative; however, local dealers emphasize that this increase has not translated into strong demand for electric vehicles, as consumers have instead turned toward hybrid vehicles.
Decline in Electric Demand and Rise in Hybrids
Dana Drone, General Manager of the Kia agency in Attleboro, indicated that demand for electric vehicles is not as strong as expected, while everyone is moving towards hybrids. Other dealers confirmed that the cancellation of the $7,500 federal tax credit last year eliminated a significant portion of the demand for electric vehicles, even with rising fuel prices.
Anton Goodwin, an electric vehicle and transportation expert at CNET, explained that demand for electric vehicles began to decline since last year, with the exception of the used car market where demand still exists. In contrast, demand for hybrid vehicles is seeing stronger growth, as all manufacturers such as Toyota and Honda are moving towards producing hybrid models.
Cost Calculations: Hybrids Outperform in the Long Run
A comparative analysis was conducted between three 2026 Kia models: the gasoline-powered Telluride, the hybrid Telluride, and the three-row electric EV9. The price of the gasoline model starts at $38,500, the hybrid at $48,200, and the electric at $56,500.
Using an average gasoline price of $4.15 per gallon and an annual distance of 14,000 miles, the annual fuel cost for the gasoline model (19 mpg) reached approximately $3,057.89, while for the hybrid model (31 mpg) it reached approximately $1,874.19, and zero for the electric model.
By dividing the price difference by the annual fuel savings, the hybrid car recovers its cost difference ($9,700) in approximately 8.2 years, while the electric car recovers its cost difference ($18,000) in approximately 5.9 years. The speed of recovery increases with increased mileage driven.
Additional Costs for Electric Vehicles
The analysis did not account for additional costs of owning an electric vehicle, such as installing a home charger, rising electricity bills, and increased insurance premiums. As for hybrid vehicles, they do not incur these costs, except for annual registration fees imposed by the state of Rhode Island on both hybrids and electrics.
Future Outlook
Goodwin believes that the total cost of electric vehicles in the long run is much lower than gasoline cars. Drone predicted that 10 years from now, everything will be hybrid.
