26 November 2025
What's fueling rising US consumer interest in hybrid vehicles?
Article Summary
Discover why hybrid vehicle adoption is accelerating, how loyalty is shifting, and how brands can capitalize on rising demand across U.S. markets.
With over 1,000 segments, including In-Market and Owners of hybrids, see how Polk Auto Direct helps dealers target the right households in their markets.
New sign-up offers for the platform, including your first month free on Meta, are available now through Nov. 30.
Beyond the bridge: The rise of hybrid vehicles in the US
Among US consumers, interest in hybrid vehicles continues to grow at a pace that indicates this is more than just a transition to electric vehicles. Between the second quarter of 2020 and the second quarter of 2025, the share of new vehicle registrations for hybrids jumped from 3.1% to 16.3%. In that same time, the share of electric vehicles (EVs) increased at a much slower pace, from 1.4% to 8.6%.
Hybrid share is now nearly twice that of EVs. Additionally, S&P Global Mobility finds that the shift toward hybrids is happening across all fuel types and regions, showing an opportunity for brands and dealers to capitalize on consumer demand.
One of the clearest signs of this trend is the return-to-market behavior of previous vehicle owners. In just three years, the share of EV owners who returned to market and bought a new hybrid vehicle doubled (from 6% to 12%). For gas vehicle owners, the share increased by 117% (from 6% to 13%).
This migration pattern indicates a broader shift in consumer preferences, emphasizing the rising popularity of hybrid options and the importance of understanding consumer behavior in this changing market.
In addition to the increasing share of hybrid vehicle registrations, brand loyalty within the hybrid segment is also growing. Historically, hybrid loyalty has been the lowest among all fuel types, hovering in the mid-30% range for most of the past decade. However, from 2022 to 2024, hybrid fuel type loyalty improved significantly, reaching over 46% today.
While that figure is growing and is now on par with non-Tesla EVs, hybrid fuel type loyalty is still below 50%.
Toyota's hybrid vehicle leadership and how other brands compare
Nearly half of all new hybrid registrations in the US are for vehicles made by Toyota Motor Corp. (TMC). TMC’s hybrid sales surpass those of Honda, Hyundai, Ford, Mazda, Stellantis, Mercedes-Benz, and Subaru combined.
TMC's hybrid advantage stems from its portfolio mix. Each TMC brand leads its sector in share of retail registrations. Hybrid vehicles comprise 49.3% of Toyota's new retail registrations, leading all other mainstream brands by large margins. Honda is a distant second at 30.1%. In luxury, Lexus leads with 35.1%, followed by the next closest competitor, Volvo, at 26.8%.
To further signal its commitment to hybrid, Toyota recently announced that the 2026 RAV4 model will only be available as a hybrid fuel type option.
Geographic trends in hybrid vehicle adoption across the US
The hybrid share of new registrations reveals interesting trends at a regional level as well. Unsurprisingly, the US West Coast markets outperform the national average hybrid share of 15.8% (as of calendar year 2025).
In fact, all five California markets within the national top 25 boast a hybrid share exceeding 23%. Seattle (25.7%) and Washington, D.C. (22.5%) are the only other top 25 markets outside the West Coast with a hybrid share above 20%. Notably, Toyota is the top-selling brand in all seven of these markets.
The markets with the lowest share of hybrid registrations are in Texas, Florida, and the Midwest. Interestingly, among these seven markets, Toyota is also the top-selling brand in four of them — Tampa, West Palm Beach, San Antonio, and Houston. Chevrolet tops the rankings in Cleveland and Detroit, while Ford leads in Dallas.
This geographic disparity presents challenges and opportunities for marketers aiming to capitalize on hybrid trends.
Plugging into hybrid vehicle demand: Loyalty, migration and opportunity
Hybrid sales are increasing, but loyalty to the fuel type remains low, providing ample conquest opportunities for brands and dealerships to attract new customers. As original equipment manufacturers focus on expanding or improving their hybrid offerings, more competition is expected.
Targeted campaigns should analyze owner loyalty behavior related to makes, models, and fuel types to effectively reach in-market shoppers. Geographic market segmentation should consider fuel type mix and competitive presence in each area.
Effective messaging will consider migration trends that can capitalize by identifying households most likely to consider switching from a gas vehicle or EV to a hybrid. These strategies will help brands and dealers connect more successfully with current customers and prospects.
With over 1,000 segments, including In-Market and Owners of hybrids, see how Polk Auto Direct helps dealers target the right households in their markets.
New sign-up offers for the platform, including your first month free on Meta, are available now through Nov. 30.
This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.