economy
Why hybrids are ‘having their moment’ as EVs and gas-powered vehicles lose market share
Hybrids are the fastest-growing segment of the U.S. auto market as EV and gas-powered vehicle market share declines.
TL;DR
- Hybrids are the fastest-growing segment in the U.S. auto market, with their market share nearly tripling in three years to almost 20% by late 2025.
- EV market share has fallen sharply to 5.9% from a peak of 10.3% in 2025, partly due to the expiration of federal tax credits.
- Buyers are choosing hybrids for their better fuel economy compared to gas cars and lower cost compared to EVs, without the charging concerns or lifestyle changes required for EVs.
- Standard hybrids do not require plugging in, using a gasoline engine alongside a self-recharging battery, offering fuel savings without altering driving habits.
- Consumers cite affordability, charging access, battery costs, and long-distance travel as concerns for EV adoption.
- While new EV prices are higher on average than gas vehicles, used EV prices have dropped, making them more accessible in the resale market.