A view of the Toyota RAV4 Hybrid shown before the game between the Washington Nationals and the Tampa Bay Rays against the Nationals Park on April 03, 2023 in Washington, DC. (
G Fiume | Getty Images
DETROIT — America’s second-largest auto market has become a matter of the haves and have-nots, as automakers with hybrid models outperform those that don’t in response to rising gas prices and declining demand for electric vehicles.
The global hybrid leader Toyota Motor On Wednesday it reported a 1.1% increase in sales in the second quarter, which led to a nearly 20% increase in sales of electrified vehicles.
Hyundai Motor, up 4% last quarter, reported 67% growth in hybrids in the first half of the year, while Honda Motor reported that record e-commerce sales helped drive an 8.4% increase in total sales in the second quarter. Kia, up nearly 3%, also reported a 152% increase in hybrid sales in the second quarter.
“Hybrids are our growth engine right now,” Hyundai and Genesis North America CEO Randy Parker said Wednesday during a phone call. “Hybrids are really taking off right now as consumers, I think, prioritize fuel efficiency and lower operating costs because of higher gas prices.”
Gasoline prices are up more than 20% from the same period last year, according to AAA.
Currently, General Motorswhich offers a wide EV lineup but only one hybrid, the low-volume Corvette, reported a 4.2% drop in second-quarter sales.
The merger of hybrids between GM, the best-selling car company in the US, and the No. 2 Toyota made Cox Automotive last week aware that the Japanese automaker is closing its sales gap with the Detroit carmaker.
“At these prices, and what we’re seeing right now in terms of sales, GM may be looking over their shoulder here as we get to the end of the year, that Toyota may overtake them as the best-selling company here in the U.S. market,” said Charlie Chesbrough, senior economist and senior industry director at Cox Automotive, during a press conference.
Cox Automotive and JD Power expect second-quarter sales to be roughly flat compared to last year. Cox factory sales will drop 0.5%, while JDP expects a 0.7% increase in vehicles sold.
Non hybrids
Outsiders in the second quarter included parent Chrysler Stellantiswhich is up 5.9%, too Nissan Motorincreased by 9.6%. Both offer limited electrified models, including hybrids and/or EVs, but are among sales-focused replacement plans.
“At a time when customers are focused on maximizing the value of each dollar they spend, our program delivers strong quality, power and the right product mix,” said Tiago Castro, senior vice president of sales and marketing for Nissan Americas on Wednesday.
Having the right product mix is key for automakers. Right now, with the exception of hybrids, the right mix increasingly means affordable cars, as many Americans face inflation, high gas prices and other issues that have been pushed out of the new car market.
Expectations for new US car sales this year are very low, according to several forecasts from analysts and companies.
Ford Motorwhich reports sales results on Thursday, is also expected to be out. Cox Automotive expects the company, which has been dealing with lost truck production, to drop 11.5% in the second quarter.
Cox is also expecting Teslawhich doesn’t report regional sales, will drop more than 20% during the second quarter, as EV demand last year began to rise earlier than the Trump administration’s expectations of up to $7,500 in incentives for consumers to buy an EV.
GM
GM said its EV sales in the second quarter were down 33% compared to a year ago.
Every GM brand saw annual sales decline during the second quarter, led by a 19.2% decline for Cadillac. Buick was down 7.5%, Chevrolet was down 3.9% and GMC reported a 0.3% drop.
Despite the cuts, including its flagship Chevrolet Silverado truck, a GM executive described the company’s business as “doing well,” including staying disciplined on sales gains and profitable full-size pickup trucks.
“Our business is performing well, and customer demand is resilient, especially for our trucks and SUVs. The depth, breadth and appeal of our vehicle portfolio allows us to lead the market in sales, while maintaining discipline in sales, pricing and incentives to deliver strong margins,” GM North America President Duncan Aldred said in the release.
GM said that despite a 7.7% drop in Silverado shipments this quarter, including a 25.9% drop in its electric truck, the company still expects to gain market share in the full-size truck segment during the period.
Its GMC Sierra trucks fared better, with a 5% increase in sales, including double-digit increases in its electric and light-duty 1500 models amid tough comparisons. GM recorded its best combined sales of Silverado and Sierra full-size trucks in 20 years in 2025, leading to the sixth consecutive year of leading that lucrative US segment.
