US Hybrid Vehicle Sales Rise as Electric Shares Stall

Hybrid vehicle sales in the U.S. continue to rise, reaching about 22% of light-duty vehicle sales in early 2025, up from 18% the previous year, while battery electric and plug-in hybrid vehicle shares remain flat. The decline in some battery electric vehicle sales, such as the Honda Prologue and Tesla Model Y, is offset by gains in others like the Volkswagen ID.4, with luxury electric vehicle sales declining partly due to reclassification of the Tesla Model 3. Battery electric vehicles maintain higher average transaction prices than the overall market, with a 25% price premium as of early 2025. Meanwhile, automakers are reviving extended-range electric vehicles (EREVs), a type of plug-in hybrid with larger batteries and small gas engines used solely as generators, with new models like the Ram 1500 pickup planned for release in 2026. Toyota is on track to have electrified versions of all its models by the end of 2025, expecting U.S. EV sales to double by the end of the decade, supported by an expanding lineup of fully electric vehicles including new models to be produced domestically. The Ramcharger EREV features a 69.7 kWh liquid-cooled lithium-ion battery pack capable of 145 miles of electric-only range and quick DC fast charging.