EV sales fall while hybrids gain share of the U.S. auto market

Through September, battery-electric sales were down 29.2% from a year earlier while conventional hybrid sales were up 22.4%, NADA reports.

Developing Updated October 14, 2026 · High

What changed?

The National Automobile Dealers Association reported a September light-vehicle sales pace of 16.0 million units at a seasonally adjusted annual rate, down 3.6% from a year earlier. Through September, battery-electric vehicle sales were down 29.2% year over year and held a 6.2% market share, 2.3 percentage points lower than a year earlier.

Conventional hybrid sales, by contrast, rose 22.4% through September, bringing their share to 15.6%. NADA noted that last year’s EV sales were distorted by purchases ahead of the end of federal tax credits, so some of the year-over-year decline reflects that unusually strong comparison.

Why does it matter?

Dealers planning inventory, advertising and service capacity have a clearer split between battery-electric and hybrid demand. Automakers and suppliers may adjust production mixes, but the new sales figures do not mean EV demand has disappeared.

This is new demand evidence beyond NewsTrend’s September 30 report on lower federal fuel-economy requirements. The rule change affects incentives to produce vehicles; these sales data show what buyers are doing.

Who is most exposed?

Dealers with EV-heavy inventories, suppliers committed to battery-electric platforms, and manufacturers deciding how quickly to expand hybrid capacity.

What should businesses watch next?

October retail incentives, dealer days-to-turn by powertrain, EV leasing and used-EV demand, and changes to 2027 production plans. Financing rates and gasoline prices could shift the balance again.

Trend check: A year-to-date divergence in sales, with a meaningful year-earlier tax-credit comparison effect; not a forecast of permanent powertrain shares.

Related Industry Intelligence: Automotive