Electric vehicle sales in the United States in the third quarter of 2026 (Q3 26) have dropped to 6% of total light vehicle sales, down from 10% in the third quarter of 2025 (Q3 25), marking a significant decline. This drop occurred after the expiration of the tax credit for purchasing electric vehicles in September 2025 and appears to have negatively impacted the automotive market.
Trends in Electric and Hybrid Vehicle Market Changes
Currently, 23% of new light vehicles sold in the United States belong to some form of electric, hybrid, or plug-in hybrid vehicles, down from 24% in Q3 25. However, hybrid vehicles have reached 16% of light vehicle sales and continue to increase their market share. Meanwhile, the average transaction price for new vehicles has risen above $50,000, reaching this level for the first time this year.
Read more: Workers' Strike at Hyundai Heavy Industries Shipyard in Ulsan Begins
Impact of Tax Credit Expiration on Electric Vehicle Sales
Two tax credits for purchasing or leasing new electric vehicles expired on September 30, 2025: the clean new vehicle tax credit and the clean new commercial vehicle tax credit. Before this expiration, electric vehicles had reached a record 12% of light vehicle sales in September 2025. However, 2025 was also the first year that electric vehicle sales and market share declined, a trend that has continued into 2026. In the first nine months of 2026, electric vehicle sales have dropped to 6% of new vehicle sales, down from 8% during the same period in 2025, indicating a decline.
The luxury segment of the automotive market, where electric vehicles have historically been more popular, is also experiencing a drop in sales. In Q3 26, electric vehicles accounted for 12% of luxury light vehicle sales, down from 31% in Q3 25 before the expiration of the clean tax credit.
Considering that sales figures each year are relatively small compared to the total number of vehicles on the road, the share of electric vehicles in the light vehicle fleet is much lower than the recent 6% share in Q3 26. In 2024, the last year for which fleet data is available, electric vehicles made up only 2% of the total registered light vehicles in the United States.
Read more: The Secretary-General of Iran's House of Industry and Mine Emphasizes the Need for Industry Modernization · Development of Energy Storage Systems for Managing Electricity Imbalance in the Country
