Hybrid share of the market reached an all-time peak of 16.3% at the midpoint of 2026, with Toyota leading the way.
Driving the news: During its Q3 2026 sales forecast, Cox Automotive highlighted the growing market share of hybrids.
In 2023, hybrids made up around 5% of the market share.
The percentage of hybrids grew to 13% in mid-2025 before jumping another 3.3% this year.
The hybrid volume is up 23% in the past year.
“Hybrids are having their moment and are moving into the mainstream,” said Stephanie Valdez Streaty, Cox Automotive Director of Industry Insights. “Roughly one out of every six vehicles is now a conventional hybrid… Hybrids have been around a long time. There was familiarity, and so I think we’re going to see that grow.”
Toyota leads sales: Toyota owned 44% of the hybrid market, gaining 12% in sales year-over-year, with an added 32,000 units in Q2.
Kia had the largest gain in sales of hybrids in Q2 at 36,000, a 130% jump year-over-year.
Honda was at a 17% share and Hyundai at a 10% share.
“Toyota still dominates,” Valdez Streaty said. “But you can see Kia had significant incremental volume, similar to Hyundai and Subaru…I think we’re going to continue to see this shift in product portfolio to really match consumer demand.”
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Bottom line: Hybrids are continuing to grow in demand, especially with gas prices around $4.50 per gallon and consumers seeking alternatives that don’t require EV chargers and are more fuel-efficient.
Valdez Streaty points out that Toyota and other automakers are making more hybrid options to meet the demand.
“[It’s] increasingly moving from being an option on the vehicle to be the vehicle that they have to offer,” she said.
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