The EV Era Is Over: Sales Crash to 2020 Levels While Hybrids Surge

A new report published by NADA shows EVs dropping back to 2020 market share levels. The publicly-available report published by NADA Chief Economist Patrick Manzi says that EVs have dropped back to just 5.1%. This follows a whopping 35.5% drop in battery-electric vehicle sales compared to the first four months of last year. This drop in EV popularity comes despite the widely trumpeted, and seemingly false, reports that higher gas prices are spurring shopper interest in EVs. At its peak, EV market share surpassed 10% in a single month, and had sustained a share of about 8% for about two years. Those days now seem to be fading into the history books.

The overall volume of vehicles delivered is on track to see about a 7% decline in 2026 compared to the prior year. Every powertrain type saw declines in market volume except for hybrids, which continue to surge. Hybrids rose over 9% in volume in April.

It is becoming clear with each passing week that American new-vehicle shoppers view hybrids as the solution to higher energy prices. For the full four months of 2026, hybrids now own 14.5% of new vehicle purchases, about three times that of BEVs. In addition to volume increases, hybrids are also seeing market share gains, up 2.1% since this time last year.

The Good News For Vehicle Shoppers
As of the most recent data, average transaction prices remain below prior highs, and the March ATP was over $1,000 below that of December 2025. There is more good news on affordability. The Cox/Moody’s affordability index, which compares the number of weeks of average American earnings to the average price of new vehicles, shows continued improvement and a much rosier picture than the prior half-decade. 

EV makers are reacting strongly to the collapsing EV market in America. Price cuts continue. Just this week, Kia announced that it will drop prices of its award-winning EV6 battery-electric vehicle by as much as $5,830. This follows effective sticker price cuts by Hyundai’s Ioniq 5 of nearly $10,000 that seemed to prop up the model's delivery volume, and Tesla’s Model Y offering a new, lower-cost trim. Honda is just the latest manufacturer to announce a realignment of EV production. GM is not quitting on EVs. With the largest selection of EVs on sale in North America, GM is upping its advertising budget for EVs. 
 

For years, the industry narrative held that rising gas prices would push American buyers toward EVs. Two months into elevated gas prices, the 2026 sales data have shattered that assumption. Instead, shoppers feeling the squeeze at the pump are turning to hybrids in record numbers. Hybrid powertrains deliver real-world fuel savings without the compromises that continue to define EV ownership. As automakers slash EV prices and rethink production plans, the message from the showroom floor is unmistakable: Americans want better fuel economy, but they want it on their own terms.

Do you think EVs will make a rebound in 2026? Tell us in the comments below. You can read the NADA report here. 

John Goreham is a 14-year veteran of Torque News. An accomplished writer and a long-time expert in vehicle testing, Goreham also serves as the Vice President of the New England Motor Press Association and has a growing social media presence. He’s also a 10-year staff writer and community moderator for Car Talk. Goreham holds a B.S. in Mechanical Engineering and an undergraduate Certificate in Marketing. In addition to vehicle and tire content, he offers deep dives into market trends and opinion pieces. You can follow John Goreham on X and TikTok, and connect with him on LinkedIn.

Image of 2026 Honda Prelude Hybrid by John Goreham.