In the third quarter of 2026, hybrid electric vehicles gained market share, accounting for 16% of light-duty vehicle sales, while battery electric vehicle sales dropped to 6%, down from 10% in the previous year. The decline in battery electric vehicle sales follows the expiration of federal tax credits in September 2025, which had previously boosted their popularity. The average transaction price for new vehicles has surpassed $50,000, contributing to the slowdown in hybrid sales growth. Luxury battery electric vehicle sales also fell significantly, from 31% to 12% of the segment.