US auto sales hold steady in July as HEV demand grows

Investing.com -- US light vehicle sales reached 1.38 million units in July, down 2% from the previous year but relatively flat compared to the previous month, according to a Macquarie report released Tuesday.

The seasonally adjusted annual rate stood at 16.5 million units in July, marking the fifth consecutive month above 16 million units. This represents the longest streak above that level in more than five years.

Hybrid electric vehicles continued to gain market share, with penetration at 15.8% in July. Hyundai-Kia hybrid sales increased 62% from the previous year, while Toyota's hybrid sales rose 22% and Honda's climbed 15%. Toyota maintained its market leadership with approximately 50% of the hybrid market share, while Hyundai-Kia approached 20%.

Battery electric vehicle penetration remained below 6%, down from a peak of 11.6% in September 2025. Tesla's market share increased to 55%, though its sales declined 21% from the previous year. Rising battery prices have affected electric vehicle profitability and demand as automakers raise prices.

Average incentive spending fell 10% from the previous year and 8% from the previous month to $3,194 per unit, representing 7% of the average transaction price. The average transaction price was $45,369, up 1% from the previous year but down 2% from the previous month, according to JD Power data.

Toyota and Hyundai-Kia combined held 27.7% market share in July, up 100 basis points from the previous year. GM and Ford's combined market share was 28.8%, down 150 basis points from the previous year.

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