In the third quarter of 2026, hybrid, battery electric, and plug-in hybrid vehicles accounted for 23% of new light-duty vehicle sales in the U.S., a slight decrease from 24% in the same period of 2025. Hybrid electric vehicles reached a 16% market share, while battery electric vehicle sales dropped to 6% from 10% in the third quarter of 2025.
Plug-in hybrid electric vehicle sales also declined, falling from 1.8% to 0.7% year-over-year. The average transaction price for a new vehicle exceeded $50 000 in the third quarter of 2026, which contributed to a slowdown in the growth of hybrid sales.
The expiration of the New Clean Vehicle Credit and the Qualified Commercial Clean Vehicle Credit on September 30, 2025, significantly impacted the market. Battery electric vehicles, which held a 12% share of sales in September 2025, saw their share fall to 6% during the first nine months of 2026.
The luxury vehicle segment, where battery electric vehicles historically maintained a strong presence, also experienced a decline. In the third quarter of 2026, battery electric vehicles made up 12% of luxury light-duty vehicle sales, compared to 31% in the third quarter of 2025.
Despite recent sales trends, the total share of electric vehicles within the entire U.S. light-duty vehicle fleet remains limited. According to 2024 data, electric vehicles represented 2% of all registered light-duty vehicles in the country.
