Hybrid electric vehicles lead U.S. electric-drive vehicle sales

Electric-drive vehicles, including hybrid electric, plug-in hybrid electric, and battery electric vehicles, now account for nearly 22% of U.S. light-duty vehicle sales. Their share of new sales has more than doubled since 2021. The Inflation Reduction Act (IRA) introduced and modified tax credits for the purchase of plug-in hybrid and battery electric vehicles, which will now expire at the end of September 2025. However, while hybrid electric vehicles were not eligible for the same tax incentives, they have led the growth in the electric-drive vehicles’ market share over the past couple of years.