Between ICE and EV: Why PHEVs are Gaining Ground in a Changing Automotive Market

By Unimrkt 12/11/2026

Key Takeaways

PHEVs combine electric driving with an engine, offering flexibility between EVs and ICE vehicles.
PHEV adoption varies across markets based on charging access, pricing, regulations, and driving needs.
Charging infrastructure, government policies, model availability, and market economics shape PHEV adoption.
Consumer priorities include electric range, running costs, convenience, performance, features, and brand preferences.
Primary research helps automotive businesses understand PHEV awareness, purchase intent, barriers, preferences, and market differences.
Quantitative and qualitative research capture structured responses from consumers and automotive stakeholders across markets.
Unimrkt Research supports automotive market research through primary data collection, validation, processing, and multi-market fieldwork.

Plug-in hybrid electric vehicles (PHEVs) are carving out a distinct space between electric vehicles (EVs) and internal combustion engine (ICE) vehicles. By combining an electric motor and rechargeable battery with an internal combustion engine, PHEVs support electric driving for shorter trips while retaining an engine for longer journeys. This gives consumers an alternative to both conventional and fully electric vehicles.

PHEV adoption, however, varies across markets. Pricing, charging access, regulations, model availability, and driving needs all influence demand. For automotive businesses, understanding these differences requires relevant data from the audiences they serve. This article explores the key differences between ICE, PHEVs, and EVs, what is driving PHEV adoption, and how automotive market research helps capture changing demand across markets.

ICE vs. PHEV vs. EV: Understanding the Key Differences

ICE vehicles, PHEVs, and EVs differ in propulsion, charging, and everyday driving.

Feature	Internal Combustion Engine (ICE)	Plug-In Hybrid Electric Vehicle (PHEV)	Electric Vehicle (EV)
Primary propulsion	Internal combustion engine	Electric motor and internal combustion engine	Electric motor
Energy source	Gasoline or diesel	Electricity and gasoline or another liquid fuel	Electricity
External charging	Not required	Supports external charging	Required
Electric-only driving	Not available	Available for a limited distance	Available for all driving
Long-distance driving	Engine provides propulsion throughout the journey	Engine provides additional driving capability when the battery’s electric range is insufficient	Requires adequate battery charge and access to charging
Tailpipe emissions	Produces emissions	Produces emissions when the engine operates	No tailpipe emissions
Reliance on charging infrastructure	None	Lower than an EV because the vehicle retains an engine	Higher because the vehicle relies entirely on its battery
Refueling and charging	Refueled with gasoline or diesel	Refueled and externally charged	Externally charged

PHEVs differ from conventional full hybrids (HEVs), which also combine an engine and electric motor but cannot be plugged in. Their batteries are charged through regenerative braking and the engine. PHEVs, by contrast, have a larger battery that supports external charging and electric driving until the battery is depleted or driving conditions require engine power.

The Growing Appeal of Plug-In Hybrid Vehicles

The appeal of PHEVs lies in the flexibility they offer between conventional and fully electric driving.

Electric driving for routine use: Drivers use battery power for everyday travel rather than relying on the engine for every trip.
Greater flexibility for longer journeys: The engine provides an alternative when a journey extends beyond the vehicle’s electric range.
Less reliance on charging availability: A PHEV supports external charging, while its engine provides another source of propulsion when charging access is limited.
A lower barrier to electrification: PHEVs allow consumers to adopt electric driving without moving directly from a conventional vehicle to a fully electric one.

Automobile market research data also shows how PHEV appeal is playing out differently across markets. In China, PHEVs’ share of new passenger car sales rose from 5.9% in 2022 to 19.5% in 2024, according to the International Council on Clean Transportation. Europe followed a different trajectory, with the share falling from 9.5% to 7.2% over the same period. PHEVs accounted for 9.8% of new EU car registrations in H1 2026, up from 8.5% in H1 2025, according to ACEA. These shifts show that the appeal of PHEVs is closely tied to the conditions of each market, including vehicle prices, charging access, and driving needs.

Market Conditions Shaping PHEV Adoption

PHEV adoption depends on whether the wider market makes the technology accessible, competitive, and practical.

Charging infrastructure: The availability of home, workplace, and public charging shapes how practical electric driving is across a market.
Government policies and regulations: Purchase incentives, tax treatment, emissions requirements, company-car policies, and restrictions on combustion vehicles can influence the market position of PHEVs.
Model availability: A wider selection of PHEVs across price points, body styles, and vehicle segments makes the technology relevant to more buyers.
Market economics: Fuel and electricity prices, vehicle costs, financing conditions, and incentives influence the overall value proposition of PHEVs.
Competition from other technologies: Changes in the price, range, charging access, and availability of BEVs, conventional hybrids, and combustion vehicles affect where PHEVs fit within the market.

What Consumers Need From the Next Generation of Vehicles

Once PHEVs are available in a market, adoption also depends on how well they fit individual driving needs and priorities. Consumers evaluate vehicles based on travel patterns, expected running costs, electric range, convenience, performance, features, and brand preferences.

These priorities can differ significantly across markets and audience groups. A driver with home charging and a predictable commute has different priorities from someone who regularly travels long distances or has limited charging access.

This is where automobile market research becomes relevant. Research can collect data on how different audiences evaluate vehicle technologies, which attributes matter to them, and where expectations differ across markets. For automotive businesses, these differences help define the questions primary research should address.

The Role of Automotive Market Research in Understanding PHEV Demand

Market-level data can show how PHEV demand is changing, but primary research helps automotive businesses understand why audiences respond differently to PHEVs, ICE vehicles, hybrids, and BEVs. This is where automotive market research firms can support structured data collection across relevant consumer and automotive audiences.

Research can measure:

Awareness and consideration: How familiar are consumers with PHEVs, and would they consider one for their next vehicle?
Purchase intent and preferences: Which vehicle technology are consumers considering, and which brands or models are in their consideration set?
Drivers and barriers: What encourages or discourages PHEV consideration, from charging access and range to running costs and vehicle price?
Charging expectations: Where do consumers expect to charge, how frequently would they charge, and what access do they have?
Price sensitivity: How do purchase price, financing, and willingness to pay affect consideration?
Product and feature preferences: Which range, performance, technology, comfort, and connected features matter most?
Segment and market differences: How do responses vary by age, location, driving behavior, vehicle ownership, or country?

Market research in the automobile industry helps in collecting direct, structured responses that show what different audiences think, prefer, and expect. For automotive businesses, that primary data provides a clearer basis for understanding PHEV demand across specific markets and target groups.

How Unimrkt Research Supports Automotive Market Research

Unimrkt Research supports market research in the automobile industry through structured primary data collection across consumer, business, and industry audiences. Our automotive research capabilities cover the full research fieldwork process, from survey programming and respondent recruitment to data collection, validation, processing, and tabulation.

Our capabilities include:

Consumer research: Collecting data from vehicle owners, prospective buyers, drivers, and other relevant consumer groups to understand preferences, consideration, usage, and purchase behavior.
B2B research: Reaching OEMs, dealerships, distributors, fleet operators, component manufacturers, and other automotive stakeholders.
Quantitative research: Conducting online surveys, CAWI, CATI, and telephonic interviews to gather structured data at scale.
Qualitative research: Conducting in-depth interviews and focus group discussions to capture detailed responses around vehicle concepts, technologies, features, and consumer experiences.
Automotive technology research: Supporting data collection across areas such as electric vehicles, connected and automated vehicles, telematics, advanced driver assistance systems, charging technologies, and other automotive technologies.
Multi-market fieldwork: Executing research across countries and languages to capture market-specific responses and facilitate cross-market studies.

As an automotive market research company, Unimrkt Research focuses on collecting and delivering accurate, structured primary data that enables automotive businesses to understand their target audiences and markets.

Partner With Unimrkt Research

As automotive markets move across ICE, hybrid, PHEV, and BEV technologies, businesses need structured primary data from the audiences and markets they serve. Experienced automotive market research firms can support this through targeted surveys, interviews, focus groups, and multi-market fieldwork.

Unimrkt Research emphasizes accurate data collection, with research support functions including data processing and validation. As an ISO 20252 and ISO 27001-certified research company, we follow established standards for research quality and information security across research programs.

Discuss your automotive research requirements with Unimrkt Research. Call +91-124-424-5210, email sales@unimrkt.com, or submit the contact form.

Frequently Asked Questions

Q1. What is automobile market research?

Automobile market research is the systematic collection of data from consumers, businesses, and other automotive stakeholders to understand preferences, demand, purchase behavior, and market requirements. It can include quantitative surveys, interviews, focus groups, and other primary research methods.

Q2. How can automobile industry research help identify changing consumer preferences?

Automobile industry research can collect direct feedback on vehicle preferences, purchase intent, technology adoption, price sensitivity, feature expectations, and brand considerations. Comparing responses across consumer segments and markets can show how these preferences differ.

Q3. How do automotive market research firms conduct primary research?

Automotive market research firms use methods such as online surveys, computer-assisted telephone interviewing (CATI), telephonic interviews, in-depth interviews, and focus groups. The appropriate method depends on the research objectives, target audience, market, and type of data required.

Q4. How can automotive market research companies collect data from vehicle buyers and owners?

Automotive market research companies can recruit relevant vehicle buyers and owners and collect structured responses through online surveys, telephone interviews, and qualitative methods such as in-depth interviews and focus groups. Research targets specific vehicle types, ownership groups, demographics, or markets.

Q5. What research methods are used to understand demand for electric and hybrid vehicles?

Research methods include quantitative surveys to measure awareness, consideration, purchase intent, and preferences, along with qualitative interviews and focus groups to explore perceptions, barriers, and expectations around electric and hybrid vehicles.

Q6. What areas of the automotive industry does Unimrkt Research cover?

Unimrkt Research supports market research in the automobile industry across areas including electric vehicles, connected and automated vehicles, automotive technology, two- and three-wheelers, commercial and non-commercial vehicles, fleet management, auto components, mobility, and vehicle accessories.