Cheaper hybrids dominate the electrified car market with record sales

Americans are buying more electrified vehicles than ever, accounting for nearly 20 percent of sales in the third quarter of this year, according to recently released data from the US Department of Energy. However, much of this growth is focused on lower-priced hybrid models rather than luxury BEVs, which continue to take up too much space in the all-electric market.

The electrified market’s record share of 19.6 percent in the third quarter includes HEVs, PHEVs and BEVs. But hybrids alone accounted for 10.8 percent of sales in the third quarter, another record. BEVs claimed a 7.0 percent share, down 0.4 percent. And if you dig deeper, 70 percent of those BEV sales were luxury models, compared to just 10 percent of hybrid sales. Buyers are clearly loving the recent expansion of hybrid options in nearly every automaker’s lineup.

The Slowdown in sales of electric cars it is not surprising. The initial EV excitementnovelty, and discounts are gone, and manufacturing costs, overproductionand unreliable EV charging this is the new reality. And hybrids are simply cheaper.

According to Cox Automotivethe average transaction price (ATP) for EVs was $56,351 in September. Although down 0.9 percent year-over-year, EV ATP is well above the industry average of $48,397. The current champion of cheap hybrids is the 2025 Toyota Corolla The Hybrid, which starts at $24,760, is less than half the EV ATP.

Automakers are trying to adjust to the oversupply and insufficient demand for electric vehicles. Ford discontinued production of the F-150 Lightning and converted to hybrid models. Volkswagen Group moves its ever-shrinking budget back to gas cars, while both General Motors Company and Mercedes-Benz changed their EV strategies to the long game.

Now, just because consumers are generally friendlier to hybrids doesn’t mean they aren’t still interested in EVs. Deep-pocketed EV buyers control 35.8 percent of total luxury vehicle sales. Yes, more than a third of all luxury models sold in the US are electric. When looking specifically at electric car sales, luxury car makers have an even bigger piece of the pie.

To be fair, luxury car makers were among the first to really dive into the all-EV promise. BMW, Jaguar Land Roverand Benz made announcements in the early 2020s. There was more flexibility with smaller model ranges than mass manufacturers. Consumers with money to spare are also eager to try something new before everyone else. Electric vehicles’ share of luxury car sales is being eroded by hybrids, but not by much and not very quickly. In addition, as an EV access to charging and infrastructure improvement to acquire a form and prices stabilizeif anyone should be worried, it’s the ICE transmissions and their inevitable status as a new niche car.