The Hybrid Surge and Market Shift
While Battery Electric Vehicles (BEVs) are still expected to account for the majority of the fleet, a key trend is the accelerating adoption of Plug-in Hybrid Electric Vehicles (PHEVs).
PHEV Growth: Global ownership of PHEVs is forecast to rise by 32% year-over-year in 2026, reaching an installed base of 39,835,111 units (up from 30,074,582 in 2025).
BEV Share Adjustment: The dominance of BEVs in terms of sales has been revised down in the 2026 forecast from an expected 77% to 63%, reflecting slower-than-anticipated adoption for fully electric models.
The BEV installed base is still forecast to grow significantly, reaching 76,344,452 units in 2026 (up from 59,480,370 in 2025).
Analysts attribute the strong PHEV momentum to customer preference for flexibility.
Davenport noted, “customers value the reassurance of a back-up petrol engine for use, should they need it.”
This dynamic has led major EV manufacturers, such as BYD, to pivot their offerings to focus on PHEV models.
A small but growing sub-category includes range extender vehicles—PHEVs where the petrol engine exclusively powers a generator to charge the battery, providing a smoother electric-only driving experience.
