What You Need To Know
Jeep plans to increase its plug-in hybrid electric vehicles (PHEVs) sales in the US by 40-50% this year, aiming to sell between 160,000 and 170,000 units. The move comes as Jeep introduces its first all-electric SUVs and looks to bridge the gap between its gas-guzzling SUVs and fully electric vehicles.
PHEVs, which combine an internal combustion engine with EV technologies, are seen as a stepping stone towards full electrification and could help accelerate consumer adoption of electric vehicles. Jeep's PHEV sales are expected to surpass Stellantis' total 2023 US sales of PHEVs and outperform the industry's forecasted segment growth for this year. The brand is also considering launching traditional hybrid vehicles in addition to its PHEV lineup and plans to introduce range-extender electric vehicle (REEV) models in the future.
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Why This Is Important for Retail Investors
Market Expansion: Jeep's plan to increase sales of plug-in hybrid electric vehicles indicates the growing market demand for eco-friendly transportation options. This expansion gives retail investors an opportunity to invest in a sector experiencing significant growth.
Potential for Profitability: With Jeep's projected sales growth in PHEVs, retail investors have an opportunity to capitalize on the potential profitability of this emerging segment of the automotive industry. By investing in companies involved in the production and development of PHEVs, investors can potentially benefit from increased sales and revenue.
Bridge to Full Electrification: Jeep's focus on PHEVs as a bridge between traditional gas-powered vehicles and all-electric models demonstrates the importance of this transitional technology.
Competitive Advantage: By leaning into PHEVs, Jeep aims to differentiate itself in the highly competitive automotive market. Retail investors can take advantage of this strategy by investing in companies that have a strong foothold in the PHEV market, potentially benefiting from increased market share and competitive advantages over automakers that are slower to adopt this technology.
Environmental Impact: The increasing popularity of PHEVs aligns with the growing global focus on sustainability and reducing carbon emissions. Retail investors who prioritize environmentally conscious investments can support this shift by investing in companies that offer PHEVs, contributing to a cleaner and more sustainable future.
How Can You Use This Information?
Here are some of the investing ideas that can be explored using this information:
Growth Investing
Investing in companies involved in the production and development of plug-in hybrid electric vehicles (PHEVs) can offer potential for growth as the market expands and sales increase.
Growth investing focuses on stocks of companies expected to grow at an above-average rate compared to other stocks in the market; learn more in our article titled 'What is Growth Investing?'.
Thematic Investing
Jeep's efforts to increase PHEV sales align with the broader theme of sustainability and reducing carbon emissions. Investors can explore thematic investment opportunities centered around the growth of eco-friendly transportation options.
Thematic Investing selects assets based on projected trends or themes believed to offer growth opportunities.
Sector Rotation
Jeep's emphasis on PHEVs presents an opportunity for investors to consider rotating or allocating a portion of their portfolio toward companies in the automotive sector that are actively involved in PHEV production and development.
Sector Rotation is the practice of shifting investment capital from one industry sector to another to take advantage of the economic cycle.
Read What Others Are Saying
CNBC: Jeep expects to grow plug-in hybrid SUV sales by as much as 50% in 2024