US Auto Sales Shake Up as EVs Take a Hit and Hybrids Surge

The US auto market is shifting gears in 2026. Electric vehicle sales are dropping hard, but traditional and hybrid models are revving up. What’s behind this sudden twist? And how are major automakers responding as gas prices stay high? Let’s break down the latest numbers and trends.

Ford Faces a Rough Ride in Q2

Ford’s Q2 US sales slid 10.3%, with just 549,200 vehicles sold from April to June. That’s a steep drop, driven mainly by a 40.7% plunge in EV sales. The F-Series trucks, Ford’s top sellers, fell 11%. The culprit? Fires that disrupted aluminium supplies, choking production.

Despite the setbacks, Ford nudged its US retail market share up by 0.2 points to 12.3%. That’s a small victory amid the turmoil. Year to date through June, Ford sold 1 million vehicles, down 9.6% from last year’s 1.1 million in the same period. The company is feeling the squeeze but holding ground.

GM’s Mixed Bag: Electric Slumps, SUVs Hold Strong

General Motors also saw a decline, but less severe. Its Q2 sales dropped 4.2% to 714,896 vehicles. Year-to-date sales hit 1.3 million, down 6.8%. EV sales took a big hit, plunging 33% in the quarter. The Chevrolet Silverado pickup dropped 7.7%, with its electric version collapsing 25.9%. Meanwhile, the GMC Sierra sales rose 5%, showing some strength in traditional trucks.

GM’s brands painted a mixed picture: Cadillac sales fell 19.2%, Buick dropped 7.5%, Chevrolet slid 3.9%, and GMC stayed almost flat, down just 0.3%. Despite these declines, GM’s Silverado and Sierra combined had their best sales in 20 years during 2025. The challenge now is maintaining that momentum amid the EV slump.

GM North America President Duncan Aldred said, “Our business is performing well, and customer demand is resilient, especially for our trucks and SUVs.” This shows that traditional vehicles still hold strong appeal even as electric models struggle.

Hybrids and Traditional Vehicles Are Winning

While EVs stumble, hybrids and conventional vehicles are picking up steam. Toyota’s US sales grew 1.1% to 673,971 vehicles in Q2. Its electrified vehicle sales surged about 20%, signaling strong demand for hybrids and plug-in models. Andrew Gilleland, senior vice president at Toyota Motor North America, explained, “Combined with our commitment to affordability and a broad range of vehicles starting under US$35,000, we’re well-positioned to expand access to electrification while delivering value across every powertrain.”

Hyundai and Kia also boosted sales by 3.4%, reaching 468,892 vehicles. Their CEO Randy Parker highlighted the role of hybrids, saying, “Hybrids are definitely our growth engine right now.” Honda posted an even bigger jump, with sales up 8.4% to 420,089 units. About 30% of Honda’s sales come from hybrid models, showing hybrids are a key growth driver.

What’s Driving These Shifts?

• High gasoline prices push buyers toward hybrids and efficient traditional vehicles.
• Supply chain issues, like Ford’s aluminium fire disruptions, impact EV production and sales.
• Electric vehicle demand drops sharply, with Ford’s EV sales down 40.7% and GM’s falling 33%.
• Traditional trucks and SUVs remain popular, with GM’s Sierra rising 5% and stable sales for Ford’s F-Series despite challenges.
• Affordability and diverse powertrain options help automakers like Toyota and Honda grow electrified vehicle sales despite EV struggles.

What’s Next for the Auto Industry?

Automakers face a tricky road ahead. The EV market is cooling off, but hybrids and classic trucks are surging. Consumers seem to want electric power but are also focused on price and fuel availability. The next few quarters will reveal if this trend holds or if EVs bounce back.

Ford and GM must navigate supply troubles and shifting consumer tastes. Meanwhile, brands leaning on hybrids and affordable electrified options are gaining ground. The battle for America’s roads is far from over, and the winners will be those who balance innovation with real-world needs.

Stay tuned as these giants adapt and evolve. The future of driving is unfolding fast, and every quarter brings new surprises.