Updated

Hybrid electric vehicles reached 16 percent of light-duty vehicle sales in the third quarter of 2026, up from prior-year levels, while battery electric and plug-in hybrid vehicles together fell to 7 percent of the market, according to the Energy Information Administration. The combined share of all advanced-drivetrain vehicles slipped to 23 percent in 3Q26 from 24 percent in 3Q25. The shift reflects shifting buyer preferences as average transaction prices for new vehicles exceeded $50,000 for the first time, making traditional hybrids a lower-cost alternative to battery electric vehicles as federal tax credits for EVs expire.