Hybrid Registrations Grow Year-Over-Year, Signaling a Shift in Fuel Type Preference

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.

From the vehicles we drive to the way we purchase them, everything in the automotive industry is evolving as new technologies, shifting incentives, and changing consumer expectations continue to develop. As electrified vehicles continue to grow their presence on the road, Experian’s Automotive Market Trends Report: Q3 2025 took a deep dive into this segment and found that 5.5 million electric vehicles (EVs) and 11.7 million hybrids were in operation this quarter. Furthermore, data through the third quarter of this year found that 73.8% of EV owners returning to market replaced their EV with another EV and only 16.5% switched to a gas-powered vehicle. The significant EV loyalty among consumers signals that the ownership experience is delivering on core expectations. While some owners continued to opt for an EV because they’ve grown accustomed to certain conveniences such as charging stations at home or workplace to avoid traditional fueling and the perks of lower maintenance needs, others took advantage of the EV tax credits before they expired at the end of September. However, as these motivations shift, it will be important to monitor how the EV market unfolds over the next six months. Notably, 11.7% of gas-powered vehicle owners replaced their vehicle with a gas-hybrid vehicle this quarter, suggesting that hybrids are acting as an effective bridge toward deeper electrification. In fact, drivers may see hybrids as the ‘happy medium’ vehicle that offers improved fuel efficiency without requiring full reliance on charging infrastructure. Why this matters for the aftermarket As the majority of consumers replace their EVs with another one and some switch their gas-powered vehicle for an electrified one, these trends signal potential long-term commitment to alternative fuel segments. This is important to monitor for aftermarket professionals as the EV service volume continues to grow, requiring different parts and technician training. With consumers increasingly turning to the aftermarket for cost-effective support, professionals who adapt to diverse powertrains will be best positioned to navigate this evolving wave of post-warranty demand. To learn more about EVs and other vehicle market trends, view the full Automotive Market Trends Report: Q3 2025 presentation on demand.