January 2026 US new-vehicle inventory trends: Hybrids surge and EVs adjust

Total advertised new-vehicle inventory dipped 0.5% month over month (MoM) to 2.77 million units in January, essentially holding near the level seen at the end of 2025.

Hybrid inventory moved sharply higher, up 6.9% MoM and 14.4% year over year (YoY) to 306,461 units. 

Meanwhile, EV inventory continued to contract, decreasing 2.0% MoM and 29.3% YoY to 101,851 units, extending the Q4 2025 downtrend and reinforcing the idea that the EV market has been working through excess availability via lower pricing, incentives, and mix changes.

At the nameplate level, a few changes stood out:

• Hyundai Ioniq 5: +86% YoY
• Chevrolet Equinox EV: +42% YoY
• Ford Mustang Mach‑E: Increased 15% MoM, a notable near-term build after prior softness.
• Lexus RZ climbed 194% YoY, one of the largest relative increases among EVs.

Days’ supply increased from 70 to 97 (+27 days), a sizable shift that likely reflects a slower sales pace in January rather than a sudden surge of inventory. Despite the days supply jump, average age of inventory held flat at 77 days, suggesting the market did not materially worsen on “staleness,” even as turn rates slowed.

Pricing softened slightly in January with the average MSRP falling $294 to $50,687; average list price down $198 to $47,238; and the average discount decreasing $94 to $3,450. These modest changes reflect a shift toward lower-priced models and dealers staying more disciplined rather than enacting broad price cuts. 

Overall, this looks less like aggressive clearing and more like incremental price recalibration, with discounting lessening even as days’ supply rose. With inventory aging and days’ supply rising, dealers are relying on targeted incentives and selective markdowns, especially as hybrids remain strong and EVs require sharper pricing to move. 

Chart 1 below shows the trend of vehicle pricing relative to MSRP. While the long-term trend is up, the last three months (Nov. -  Jan.) have shown that a steady 54% of inventory is listed below MSRP.

January’s data shows stable inventory but slower sales, with hybrid inventory continuing to rise and EVs normalizing. Pricing is adjusting gradually, with smaller discounts and lower MSRPs, indicating a measured response to slower demand. Going forward, aligning pricing and incentives to local market conditions will be key, especially for EVs where affordability and competitive offers drive sales.