Hybrid Gross sales Rise Whereas Battery Electrical Gross sales Stay Decrease After Tax Credit score Expiration

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Within the third quarter of 2026 (3Q26), 23% of recent light-duty automobiles bought in the US have been hybrid electrical, battery electrical, or plug-in hybrid electrical automobiles, down barely from 24% in 3Q25. Between 3Q25 and 3Q26, hybrid electrical automobiles continued to achieve market share, reaching 16% of light-duty automobile gross sales. Progress of hybrid electrical automobile gross sales has slowed this quarter as the common transaction worth for a brand new automobile handed $50,000—the primary time this worth has been reached thus far this 12 months, in line with Kelley Blue Guide.

The market shares of battery electrical and plug-in hybrid electrical automobiles decreased over the identical interval, in line with estimates from Omdia. In 3Q26, battery electrical automobile gross sales have been 6% of recent light-duty automobiles bought, down from 10% in 3Q25; plug-in hybrid electrical automobile gross sales fell from 1.8% to 0.7% over the identical interval.

These automobile varieties have an effect on the broader vitality sector in numerous methods. Battery electrical and plug-in hybrid electrical automobiles eat electrical energy from the grid, which impacts electrical energy demand. By comparability, hybrid electrical automobiles eat liquid fuels and don’t connect with the grid. Hybrid automobiles weren’t eligible for any of the federal tax credit that expired in September 2025.

Two tax credit for buying or leasing new electrical automobiles expired on September 30, 2025: the New Clear Automobile Credit score and the Certified Industrial Clear Automobile Credit score. Battery electrical automobiles made up a file 12% of light-duty automobile gross sales in September 2025, instantly earlier than the credit expired. Nevertheless, 2025 marked the primary 12 months the place annual gross sales and market share of battery electrical automobiles declined, a development that has continued in 2026. Battery electrical automobile gross sales fell to six% of recent automobile gross sales within the first 9 months of 2026, down from 8% over the identical interval in 2025.

Battery electrical automobiles have traditionally been extra common within the U.S. luxurious automobile section, which accounted for 12% of the overall U.S. light-duty automobile gross sales in 3Q26. Nevertheless, gross sales on this section are additionally declining. In 3Q26, battery electrical automobiles accounted for 12% of luxurious light-duty automobile gross sales, down from 31% in 3Q25 previous to the expiration of the clear automobile tax credit.

As a result of gross sales figures in any 12 months are comparatively small in contrast with the overall variety of automobiles on the highway, electrical automobiles’ share of the light-duty automobile fleet is way lower than the current whole 6% gross sales share in 3Q26. In 2024, the latest 12 months for which we’ve fleet-wide information accessible in our Month-to-month Power Evaluate, electrical automobiles accounted for two% of all registered light-duty automobiles in the US.

Article from As we speak in Power. Principal contributors: Matthew Skelton, Michael Dwyer