In a World of Larger Vehicles, Sedans Hold Steady

As the market finds its footing, evolving consumer demand is driving changes in new and used vehicle registrations. In response, manufacturers are balancing affordability and production efficiency to protect their market share. According to Experian’s Automotive Market Trends Report: Q4 2025, new vehicle registrations slightly decreased to 3.8 million, from 4 million this time last year. On the used side, registrations ticked up slightly year-over-year, going from 9 million to 9.1 million. With elevated new vehicle pricing and higher interest rates likely playing a role in new vehicle registrations dipping, buyers seem to be gravitating toward lower-cost alternatives in the used market. Familiar OEM leaders remain steady at the top of market share Despite shifts in vehicle registrations, leaders in new vehicle manufacturer market share have remained consistent. For instance, data through the fourth quarter of this year reveled General Motors (GM), Toyota, and Ford continue to hold the top three positions in new vehicle market share, with GM coming in at 17.4% share, followed by Toyota (16.5%), and Ford (12.6%). At the make level, Toyota held the top position for the fourth consecutive year in new vehicle market share, coming in at 14.1% through Q4 2025; they were followed by Ford (11.9%) and Chevrolet (11%). Sustained leadership in today’s market isn’t just about scale, it relies on how quickly manufacturers can respond and adapt to shifting consumer preferences and industry changes. Those that adapt their portfolios and go-to-market approaches will be best positioned not just to protect their share, but to grow it as the market continues to evolve. To learn more about vehicle market trends, view the full Automotive Market Trends Report: Q4 2025 presentation on demand.

Alternative fuel vehicles continued to gain momentum in the fourth quarter of 2025, driven by expiring electric vehicle (EV) tax credits and a growing preference for options that bridge the gap between full electric and traditional gasoline vehicles. According to Experian’s Automotive Consumer Trends Report: Q4 2025, alternative fuel vehicles accounted for 38.6% of new retail car registrations in the last 12 months, with 11% battery electric (BEV) and 27.6% hybrids and plug-in hybrids (PHEVs). This signals that the narrative about growth in consumer interest for alternative fuel is increasingly towards hybrids, not just full EVs. Taking a deeper dive, the Toyota Camry Hybrid led all alternative fuel car models, coming in 31.7% in Q4 2025. Rounding out the top five were Tesla Model 3 (19%), Honda Civic Hybrid (10.1%), Honda Accord Hybrid (9%), and Toyota Prius (5.3%). Interestingly, the Toyota Camry also stood out as the top model in both new and used car markets in Q4 2025, holding 12.2% of new car market share and 6.3% of used car market share. The Honda Civic ranked second in new car market share, coming in at 10.5% this quarter, while the Honda Accord secured the second spot in the used car market at 5.8%. The prominence of these vehicles leading both new and used car markets reflects a combination of strong new-vehicle sales and sustained demand in the secondary market. Data in the report also revealed strong loyalty within Toyota and Honda, with significant inflow between the two brands. For instance, 38.4% of Toyota Camry buyers replaced their vehicle with another Camry in Q4 2025, and 39.7% of Honda Civic buyers replaced it with another Civic. These trends reinforce the value of dealers monitoring evolving consumer preferences and aligning inventory with vehicles that offer fuel efficiency and flexible powertrain options as the market continues to shift. To learn more about car insights, view the full Automotive Consumer Trends Report: Q4 2025 presentation.

Many across the industry have been waiting to learn how EV activity has changed now that the EV tax credit has been eliminated. According to Experian’s State of the Automotive Finance Market Report: Q3 2025, the EV market saw a sharp uptick in transactions as many locked in these benefits before they disappeared, though it remains to be seen what the market will look like in the fourth quarter. With the EV market expanding and more models entering the lineup, shoppers also benefited from various options across a wider range of price points within their budget. Even so, many opted to lease a new EV rather than purchase it. More than 56% of consumers leased an EV in Q3 2025, up from 46.43% last year. The gap between the number of EV leases and purchases reflects several underlying factors, one of them being this option likely offered lower upfront costs and monthly payments. For instance, the average monthly payment for a lease was $172 lower than a loan for an EV in Q3 2025. Where EV performance stands in the broader market When looking at the data from a larger perspective, EVs made up 25.31% of the total new lease market, compared to 17.69% a year ago. The alternative fuel type also comprised four of the top ten leased models, with Tesla Model Y (4.35%) and Tesla Model 3 (2.58%) as the top two. They were followed by the Honda Prologue (1.78%) as the fifth most leased model and the Hyundai IONIQ 5 (1.49%) as the ninth. EVs making up nearly half of the top ten leased models in the overall market underscores how quickly consumer preferences can shift and how incentives play a role in purchasing behavior. Consumers’ comfort with EV technology continuing to grow paired with the steady expansion of compelling models across segments also highlights the momentum that is being brought to the overall automotive industry. As the market continues to move forward, the interplay of expiring incentives, more model availability, and a strong desire for leasing shows how EVs have steadily become a more prominent consideration. Leveraging these insights will help automotive professionals best position themselves to support consumers navigating an increasingly dynamic landscape. To learn more about EVs and other automotive finance trends, view the full State of the Automotive Finance Market Report: Q3 2025 presentation on demand.