Not Ready to Go Full EV? Some Car Companies Bet Bigger on Hybrids

Auto buyers’ appetite for battery-powered vehicles is helping elevate demand for their evolutionary predecessor, the gas-electric vehicle

The climate bill recently passed by the Senate could knock thousands of dollars off the sticker price of electric vehicles, but it is also redefining which cars are eligible. WSJ’s George Downs breaks down the new rules.<br>Illustration: George Downs

Demand for hybrid vehicles is hot, reinforcing the view from Toyota Motor Corp. and other auto makers that the gas-electric approach will play an important role even as the industry races toward fully electric cars.

Both hybrids and electric vehicles have grabbed a bigger slice of the U.S. market over the last two years, as higher gasoline prices and an influx of new models spur demand, dealers and analysts say.

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