Electric Revolution: Hybrid Vehicles Accelerate in U.S. Market
Hybrid and electric vehicles make up over 22% of U.S. sales in Q1 2025, with hybrids gaining traction. While luxury electric car sales decline after Tesla Model 3 was reclassified, electric vehicles still represent 23% of luxury sales in early 2025.
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According to estimates from Wards Intelligence, around 22 percent of light-duty vehicles sold in the U.S. during the first quarter of 2025 were hybrid, battery electric, or plug-in hybrid models. This marks an increase from 18 percent in the first quarter of 2024, reflecting the growing popularity of eco-friendly vehicles.
The US Energy Information Administration further indicated that within the luxury vehicle sector, battery electric vehicles are particularly prevalent. Nevertheless, luxury vehicles represented just 14 percent of the total light-duty market in early 2025, the lowest since mid-2020.
Electric vehicles now account for 23 percent of luxury vehicle sales, a dip from previous years after the Tesla Model 3 was reclassified as a non-luxury vehicle in late 2024. This shift has seen electric cars make up more than a third of luxury sales in 2023 and 2024.
(With inputs from agencies.)
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