Hybrids Are Eating EVs Lunch in the US Market: 2025 Data Breakdown | Taha Abbasi

The Hybrid Surge Nobody Expected

Taha Abbasi digs into surprising market data: approximately 22% of all light-duty vehicles sold in the US in 2025 were electrified (hybrid, BEV, or PHEV), up from 20% in 2024. But the growth came almost entirely from hybrids — while battery electric vehicle and plug-in hybrid market share actually decreased.

This is a nuanced story that both EV bulls and bears are misinterpreting. The headline — “EVs are losing to hybrids” — misses the bigger picture. As Taha Abbasi explains, the market is not rejecting electrification. It is finding its own pace.

What the Numbers Actually Show

According to industry estimates, the 2025 US market broke down roughly as follows:

• Traditional hybrids (HEV): ~12% market share, up from ~9% in 2024 — the big winner
• Battery electric vehicles (BEV): ~8% market share, down slightly from ~8.5% in 2024
• Plug-in hybrids (PHEV): ~2% market share, roughly flat

The hybrid surge was driven by Toyota, which has bet heavily on hybrids as a transition technology, and by Ford, Honda, and Hyundai expanding their hybrid lineups in response to consumer demand.

Why Hybrids Are Winning Right Now

Taha Abbasi identifies several factors driving hybrid growth at the expense of pure EVs:

• No charging anxiety: Hybrids refuel at gas stations, eliminating the infrastructure concern
• Price accessibility: Hybrid premiums are typically $2,000-4,000 over gas models, versus $10,000+ for EVs
• Familiarity: The ownership experience is identical to a gas car, with better fuel economy
• Policy uncertainty: Changing federal incentives have made consumers hesitant to commit to full EV

Why This Does Not Mean EVs Are Losing

Context matters. The US EV market grew from virtually zero to 8%+ in under a decade — one of the fastest technology adoption curves in automotive history. A brief plateau during a period of policy uncertainty and high interest rates is not a reversal; it is a breather.

Taha Abbasi points to Tesla’s continued dominance as evidence of strong underlying demand. The Model Y was the best-selling car in the world in 2023 and remained the top-selling EV in the US throughout 2025. When the product is right, consumers choose electric.

For more market analysis, see Taha Abbasi’s EV pricing paradox analysis.

The Long View

As Taha Abbasi sees it, hybrids and EVs are not competing — they are sequential stages of the same transition. Hybrids introduce consumers to electrified powertrains. Once charging infrastructure matures and EV prices reach parity, the transition to full electric becomes natural. Toyota’s hybrid dominance in the 2020s may prove to be the onramp that delivers millions of future EV buyers.

The transition will not be linear. But the direction is clear.

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About the Author: Taha Abbasi is a technology executive, CTO, and applied frontier tech builder. Read more on Grokpedia | YouTube: The Brown Cowboy | tahaabbasi.com