Sales of battery electric vehicles (BEVs) in the US fell to 6% of new light-duty vehicle sales in the third quarter of 2026, down from 10% a year earlier, as the market continued to adjust following the expiration of federal clean vehicle tax credits in September 2025. Meanwhile, conventional hybrid vehicles increased their market share to 16%, according to the US Energy Information Administration (EIA), citing estimates from Omdia.

Overall, hybrid electric, battery electric and plug-in hybrid vehicles accounted for 23% of new light-duty vehicle sales in the third quarter, slightly below the 24% recorded in the same period of 2025. Plug-in hybrid electric vehicles (PHEVs) also lost ground, with their share falling from 1.8% to 0.7%. The EIA noted that growth in conventional hybrid sales slowed during the quarter as the average transaction price of a new vehicle exceeded $50,000 for the first time in 2026, according to Kelley Blue Book.

The decline in BEV sales follows the expiration of two federal tax credits on 30 September 2025: the New Clean Vehicle Credit and the Qualified Commercial Clean Vehicle Credit. BEVs had reached a record 12% of light-duty vehicle sales in September 2025, immediately before the incentives expired. However, 2025 marked the first year in which annual BEV sales and market share declined, a trend that continued into 2026. During the first nine months of 2026, BEVs accounted for 6% of new vehicle sales, compared with 8% over the same period in 2025.

The downturn has also affected the luxury vehicle segment, where BEVs have historically been more popular. Luxury vehicles accounted for 12% of total US light-duty vehicle sales in the third quarter of 2026, but BEVs' share of sales within this segment dropped to 12%, from 31% in the third quarter of 2025.

The different powertrains also have different implications for the energy sector. BEVs and PHEVs draw electricity from the grid, affecting power demand, while conventional hybrids rely on liquid fuels and do not plug into the grid. Conventional hybrids were not eligible for the federal tax credits that expired in September 2025. Despite their share of new sales, electric vehicles still represented only 2% of all registered light-duty vehicles in the US in 2024, the most recent year for which the EIA has fleet-wide data.