Inventory declines, but market balance improves: December auto inventory snapshot

Electric vehicle (EV) inventory continued its downward trajectory in December, dropping 30% YoY and 6% MoM to 103,590 units. Chevrolet Equinox EV now represents the largest share of EV inventory, while Ford Mustang Mach‑E volume reached its lowest point in several years.

Other EV highlights include the Toyota BZ and Lexus RZ posting month-over-month gains, and disruptor EV brands continuing their steady increase in their share of EV inventory that began in July 2025.

Perhaps most significantly, average EV list price has declined substantially from $59,599 in September to $53,577 in December, a trend driven by both incentives and fundamentally lower pricing on 2026 Model Year (MY26) models.

The introduction of MY26 EVs at lower base prices, coupled with a changing mix, the Equinox's growing share versus the previously dominant, and higher priced Mustang Mach-E, contributed to this downward pressure.  This could suggest the market has found a more sustainable and affordable price point for electric vehicles.

Hybrid electric vehicles (HEVs) continued to see strong demand in December, with inventory up 18.7% YoY, though down 13.1% MoM to 285,963 units. The Honda CR-V continued to lead in hybrid volume, maintaining its position as the highest-volume hybrid and reflecting sustained consumer interest in fuel-efficient options. 

Table 1: Hybrid electric vehicle inventory volumes

December's results highlight a market in transition, shaped by evolving pricing strategies and continued inventory management efforts. Lower EV price points, stable pricing trends, and improved inventory turnover all pointed toward a more balanced marketplace finding its footing after years of disruption.

As the industry moves through 2026, monitoring the interplay between supply, demand, and affordability will remain essential for OEMs and retailers particularly as the market gauges whether EV demand is stabilizing without federal incentives.