Jeep’s plug-in hybrid SUV sales expected to grow 40% in 2024

NEW YORK — Jeep plans to increase U.S. sales of plug-in hybrid electric vehicles by as much as 50% this year, as it pushes for the technology as a bridge between gas-guzzling traditional SUVs and fully electric vehicles amid a slower-than-expected pace of EV sales.

of Stellantis Jeep CEO Antonio Filosa told CNBC that the company expects to sell 160,000 to 170,000 plug-in hybrid electric vehicles (PHEVs) in the US this year, up 40% to 50% from last year.

The goal comes as Jeep launches its first all-electric SUV in the U.S., starting with the Wagoneer S.

“Now is the perfect time to be flexible like we are,” Filosa said in an interview after unveiling the brand’s new electric car in New York on Thursday. “One of the pillars of growth in the market is going to be freedom of choice.”

PHEVs, which combine internal combustion engine and EV technology, could help accelerate consumer adoption of electric vehicles as a kind of step towards fully electric vehicles.

Jeep’s projected level of PHEV sales this year would surpass Stellantis’ total U.S. sales of the vehicles, which total about 143,000 in 2023. That would outpace industry expectations of 27.5% growth in the PHEV segment this year, according to AutoPacific, which compares with the 17% growth in EVs projected by the consulting data firm.

Jeep sold a total of 113,113 PHEVs last year, including 67,429 Jeep Wranglers and 45,684 Jeep Grand Cherokees. Through the first quarter of this year, sales totaled 31,750, up 47% from the same period last year. The brand is the number one seller of PHEVs in the U.S.

Jeep has been emphasizing PHEVs more than any other vehicle line to supplement sales of the brand’s gas-guzzling SUVs amid tougher emissions and fuel economy standards.

Jeep’s next-generation model will be the Wagoneer S EV, due for release this fall, followed by the Wrangler-like EV Recon and a successor to the discontinued Cherokee midsize SUV early next year. It also plans to add plug-in “range extender” models to its gasoline-powered Wagoneer and Grand Wagoneer large SUVs in 2025.

“We have a strategy. We have a business plan and we believe that in terms of pricing and product, we are perfect to meet the volume of production that we want,” Filosa said.

Both hybrids and plug-in hybrids combine conventional engines with EV technology. Toyota The Prius is equipped with electric components such as a small battery to supplement the engine and improve fuel efficiency.

Plug-in hybrids typically have larger batteries that allow them to drive a certain distance on all-electric power before needing to power the engine or electric motor.

Both Filosa and Stellantis Chief Technology Officer Ned Curic said the companies are considering whether to offer conventional hybrids in the United States in addition to plug-in models.

“We’re currently evaluating how the market will respond to our hybrids,” Mr. Curic said in a separate interview. “Our roadmap includes EVs, PHEVs, [and internal combustion engine]”

The “Range Extender Electric Vehicle” model (REEV) works a little differently than a typical hybrid: the vehicle operates as a zero-emission EV until the vehicle’s battery dies, and then after the initial charge, an on-board generator powered by the 3.6-liter V6 engine kicks in to power the vehicle.

Stellantis’ first REEV vehicle will be the Ram Ramcharger full-size pickup truck, due for release later this year.

“This is a pretty good option,” Curic said. “I’m sure this car will be a big success.”

According to Curic, REEVs are expected to be priced higher than PHEVs (which are already expensive compared to conventional gasoline-powered vehicles), but lower than all-electric vehicles.