US Hybrid Electric Vehicle Market Share Increases in First Quarter: EIA

Around one in eight light-duty vehicles sold in the quarter were hybrid electric ones.

Published: 6/2/2025, 10:47:43 AM EDT

US Hybrid Electric Vehicle Market Share Increases in First Quarter: EIA — Waymo vehicles charge at a charging station in Santa Monica, Calif., on May 14, 2025. (Eric Thayer/Getty Images)

The market share of hybrid electric vehicles continued to rise annually in the United States during the first quarter of 2025 while the share of battery electric vehicles (EV) and plug-in hybrid electric vehicles was “relatively flat,” the Energy Information Administration (EIA) said in a May 30 statement.

EVs run purely on electricity. Hybrid electric vehicles (HEV) have a gas-powered internal combustion engine as well as a battery-fed electric motor which work together to run the vehicle.

HEVs are distinct from plug-in hybrid electric vehicles (PHEV). HEVs use tech like regenerative braking to recharge batteries and do not have a plug to charge from the grid. PHEVs also have a gas engine and a battery-fed electric motor. But unlike an HEV, PHEVs have plugs to charge via an electric grid.

“About 22% of light-duty vehicles sold in the first quarter of the year in the United States were hybrid, battery electric, or plug-in hybrid vehicles, up from about 18% in the first quarter of 2024,” EIA said, citing estimates from automotive data provider Wards Intelligence.

The share of PHEVs was the lowest, making up only about 2 percent of light-duty vehicles sold in Q1. EVs had a share of around 8 percent while HEVs had the highest share at roughly 12 percent.

EIA said there was a decrease in EV sales in the first quarter that was “driven by declining sales of battery electric models such as the Honda Prologue, Chevrolet Equinox, and Tesla Model Y. These declines were partially offset by increased sales of other battery electric models, such as the Volkswagen ID.4 and Toyota bZ4X.”

The fall in EV sales comes amid a declining interest in these vehicles among Americans.

According to an April 8 post from Gallup, the percentage of Americans who said in a poll that they either own or have an interest in owning electric vehicles fell from 59 percent in 2023 to 51 percent in 2024 and continued to be at 51 percent this year as well.

The latest results show that “interest in hybrids exceeds EVs in both current ownership (8% vs. 3%, respectively) and potential buying (57% vs. 48%),” it said.

Some of the top concerns that people have about electric vehicles include their high acquisition costs, the time required to charge vehicles, lack of proper public charging infrastructure, and driving range.

The cost issue was highlighted by the EIA, which said that the average transaction price for EVs “increased from $55,500 in December 2024 to $59,200 in March 2025, compared with the average price of all new vehicles, which decreased from $49,700 to $47,500.”

“This 25% difference between battery electric vehicles and the industry average prices in March 2025 was the highest in any month since April 2023.”

EV Market Challenges

In a May 21 statement, automotive services company Cox Automotive said that the EV market in the United States is facing numerous challenges.

In April, “new EV sales experienced a decline both month-over-month and year-over-year, although the market share in April saw a slight increase compared to March. Manufacturers had mixed results, with some reporting growth and others facing significant decreases,” it said.

The number of EVs sold in April was 100,495 units, down 5.9 percent from March and 5.6 percent from a year back. Cox predicted uncertainty in markets and the current administration’s tariff policies to continue impacting EV sales moving forward.

“A recent consumer survey conducted by Cox Automotive indicates that nearly half of the respondents believe tariffs will have a significant impact on their decision to purchase an EV,” said the company.

A massive negative impact on the EV market would be rescinding the current $7,500 in federal incentives being given for buying these vehicles.

Republicans have introduced the One Big Beautiful Bill Act, which contains a provision seeking to eliminate such incentives.

Cox said in another May 21 statement that sentiment regarding electric vehicle sales among automotive dealers has fallen. The EV sales index fell to 44, with future sales expectations dropping to 37, which is the “lowest score” since 2021, it said.

From The Epoch Times