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

NEW YORK – Jeep plans to increase U.S. sales of its plug-in hybrid electric vehicles by up to 50% this year, as it leans on the technology as a bridge between its traditional gas-guzzling SUVs and fully electric vehicles in amid a slower economy. Electric vehicle sales pace higher than expected.

He stellantis The brand expects to sell between 160,000 and 170,000 plug-in hybrid electric vehicles, or PHEVs, in the United States this year, a 40% to 50% increase from last year, Jeep CEO Antonio Filosa told CNBC.

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

“It's the best time to be flexible, like we are,” Filosa said during an interview Thursday after unveiling the brand's new electric vehicle in New York. “One of the pillars of market growth will be freedom of choice.”

PHEVs, which combine an internal combustion engine with electric vehicle technologies, could help accelerate consumer adoption of electrified vehicles, as a sort of tentative step toward all-electric models.

PHEV sales at the level Jeep expects this year would surpass Stellantis' total vehicle sales in the United States in 2023, at approximately 143,000 units. They would also beat the industry forecast for 27.5% segment growth this year, according to AutoPacific. That compares with the electric vehicle data and consulting firm's 17% growth.

Jeep's PHEV sales last year totaled 113,113 units, including 67,429 Jeep Wranglers and 45,684 Jeep Grand Cherokees. During the first quarter of this year, sales totaled 31,750, 47% more than in the same period of the previous year. The brand is first in the United States in PHEV sales.

Jeep has leaned toward PHEVs more than others to offset sales of the brand's gas-guzzling SUVs amid increasingly stringent emissions and fuel economy standards.

The next Jeep vehicles are expected to be the Wagoneer S EV this fall, followed by a Wrangler-like EV called Recon and a replacement for the discontinued Cherokee midsize SUV during the first half of next year. The automaker will also add new plug-in “range extension” models to its gas-powered Wagoneer and Grand Wagoneer large SUVs in 2025.

“We have a game plan. We have a business plan and we believe that, in terms of price and product position, we are perfect to achieve the volume we want to produce,” Filosa said.

Both hybrids and plug-in hybrids have a traditional engine combined with EV technologies. A traditional hybrid, such as toyota Prius has electrified parts, including a small battery, to provide better fuel economy to complement the engine.

Plug-in hybrids typically have a larger battery to allow all-electric driving for a certain number of miles until an engine or electric motors are needed to power the vehicle.

Both Filosa and Stellantis Chief Technology Officer Ned Curic said the company is evaluating whether to launch traditional hybrid vehicles in the U.S. in addition to its plug-in models.

“We are deciding right now how the market will respond to our hybrids,” Curic said during a separate interview. “We have a good mix on our roadmap between EV, PHEV, [and internal combustion engine]”.

“Range Extended Electric Vehicles,” or REEV, models work slightly differently than typical hybrids. The vehicles can operate as zero-emission electric vehicles until the vehicle's battery is depleted and an onboard electrical generator, powered by a 3.6-liter V6 engine, kicks in to power the vehicle after its initial charge.

Stellantis' first REEV vehicle is expected to be the full-size Ram Ramcharger pickup truck later this year.

“This is a very good option,” Curic said. “I'm sure the vehicle will do exceptionally well.”

According to Curic, REEVs are expected to be priced higher than PHEVs (which already command a premium compared to traditional gasoline-powered vehicles), but below all-electric models.