Hybrids are expected to account for a record 16.3 percent of the U.S. new-vehicle market. Toyota leads the market, while Kia and Subaru are also growing as they quickly expand their hybrid lineups.

InsideEVs and Cox Automotive projected hybrids would make up 16.3 percent of U.S. new-vehicle sales in the third quarter this year. That is up 3.3 percentage points from 13 percent a year earlier.

Toyota held 44 percent of the U.S. hybrid market as of the second quarter, keeping a dominant lead. Its share slipped about 4 percentage points from a year earlier, but sales rose 12 percent, or about 32,000 vehicles. After opening the market with the Prius, Toyota has shifted key models such as the Camry and the new RAV4 toward hybrids, supporting its market dominance.

Kia's growth also stood out. Second-quarter hybrid sales rose 130 percent, or about 36,000 vehicles, from a year earlier, giving it a 9 percent market share. The addition of the Telluride hybrid, which began U.S. production this year, also raised the potential for further sales growth. Kia said first-quarter hybrid sales rose 73 percent from a year earlier.

Subaru, off a low base, saw second-quarter sales jump 140 percent, or about 16,000 vehicles, for a 4 percent share. Subaru had no hybrid lineup in 2024, but later re-entered the market by adding the Forester and Crosstrek hybrids.

By contrast, plug-in hybrid vehicles are forecast to have a 1.1 percent share in the third quarter, while battery electric vehicles are seen at 5.8 percent. Hybrids are becoming more prominent in the U.S. electrified-vehicle market as their practicality stands out, allowing drivers to cut fuel costs without changing charging habits.