WASHINGTON, D.C.: The US auto market is seeing a steady rise in hybrid vehicle purchases, with new data showing hybrid car sales grow while electric and plug-in hybrid vehicle shares hold flat. According to estimates from Wards Intelligence, hybrid, battery electric, and plug-in hybrid cars made up 22% of all light-duty vehicle sales in the first quarter of 2025, up from 18% during the same period in 2024.
Of these, hybrid electric vehicles are leading the trend, capturing more consumer interest due to a combination of affordability and improved fuel efficiency. Meanwhile, fully electric and plug-in hybrid models have seen little movement in their market shares, despite the buzz around sustainable driving.
The data, published by the US Energy Information Administration, also highlighted a shift in electric vehicle trends in the luxury segment. Electric vehicles accounted for 23% of all luxury car sales in early 2025 — a noticeable dip from previous years, when they made up over one-third of luxury sales.
A key factor in this drop is the reclassification of the Tesla Model 3 as a non-luxury vehicle in late 2024, which has altered market perceptions and impacted statistics. As a result, total luxury vehicle sales also hit a low, comprising just 14% of the overall light-duty vehicle market — the lowest share since mid-2020.
Still, the rising demand for hybrids suggests that American drivers may be favouring vehicles that combine familiar fuel use with electric efficiency. As hybrid car sales grow, automakers are expected to continue expanding their hybrid line-ups to meet shifting preferences.
The plateau in electric vehicle growth also signals potential challenges ahead for EV adoption, particularly in segments outside luxury, as affordability and infrastructure remain ongoing considerations.
