An interesting thought struck me during the last days, discussing battery breakthroughs and oil prices. A McKinsey study from 2012 featured a nice graph for the economic viability of different drive train technologies. While some years have passed, I think the fundamental idea is still valid. So here is the info graph: Two things have changed materially since 2012: 1) battery prices more than halved 2) oil price halved So the economic window for HEV and PHEV drivetrains is quickly closing. You would expect that consumers now pick gas guzzlers again. But there are CO2 fleet limitations in EU and other limitations in effect in other important markets like U.S. or China. The cheapest way to fulfil these today would be BEVs. And hopefully, while battery prices continue to drop, not even raising gas prices can make hybrids sexy again. My conclusions: 1. The days of PHEV are numbered, and they will never come back. 2. BEVs will establish a solid foothold within all manufacturers fleets.