The sales growth of electric vehicles in the U.S. is occurring, but at a much slower pace than the automakers had hoped, given the years of development time and billions of dollars invested in the technology. The apparent fruit of the multi-year, multi-billion-dollar investment seems far from the anticipated results. Customer preferences and ongoing regulatory uncertainty have forced many manufacturers to rush to introduce hybrid and plug-in hybrid vehicles, which, on the surface, may seem like a step backward, but that’s not exactly the case. A shift in strategy, not technology. During an exclusive interview with TopSpeed, Ryan Shaw, the senior manager of product management at global automotive supplier company Magna, explained that this is a shift in priority, not a major shift in technology. He believes that customers are smart enough not to invest blindly or abandon their work abruptly. They are not completely discarding the development of electric vehicles, nor are they making a sudden shift to hybrids. Automakers, particularly those in North America, have been aggressively promoting electric vehicles for years, but the current automotive climate may offer them a unique opportunity. If manufacturers delay some of their fully electric vehicles and related technologies for a few years, Shaw says this will give them a chance to pause and reassess their electrification strategy, considering whether they are making the right decisions. Customers of Magna seem to be very wise, preserving the profitable ICE space while also offering BEVs to those who want them. This strategic shift not only helps meet government regulations but also meets the needs of consumers, which is crucial for any business that wants to continue operating. As for whether it’s hybrid or plug-in hybrid, Shaw said that PHEVs are more in demand, offering around 50 miles of all-electric range. Although these drive systems are more complex and expensive than regular hybrids, they also offer capabilities closer to those of fully electric vehicles. Reaching 50 miles of electric range is enough to meet the daily needs of many drivers. The only problem is, drivers have to charge these vehicles to get the full benefits they provide. Shaw pointed out that there is a lot of resistance to change, especially in the North American market, but once you drive one for a while, plug-in hybrids are easy to understand. It’s an exciting time to be at Magna, according to Shaw, especially as automakers pivot to producing more hybrids to meet various drivers’ needs. He added that automakers spend a lot of time communicating with their customers, as the ultimate goal is to sell cars.
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