Hybrid sales rise while battery electric sales remain lower after tax credit expiration

What happened: In 3Q26, 23% of new U.S. light-duty vehicles sold were hybrid, battery electric, or plug-in hybrid electric, down from 24% in 3Q25. Why it matters: Battery electric sales and market share declined in 2025 for the first time annually, a trend continuing in 2026 after the New Clean Vehicle Credit and Qualified Commercial Clean Vehicle Credit expired. Hybrids, which were not eligible for those credits, continued to gain share, and hybrid growth slowed as transaction prices rose.

In 3Q26, 23% of new U.S. light-duty vehicles sold were hybrid, battery electric, or plug-in hybrid electric, down from 24% in 3Q25.

Battery electric sales and market share declined in 2025 for the first time annually, a trend continuing in 2026 after the New Clean Vehicle Credit and Qualified Commercial Clean Vehicle Credit expired. Hybrids, which were not eligible for those credits, continued to gain share, and hybrid growth slowed as transaction prices rose.