By The Epoch Times | Created at 2026-09-28 22:26:55 | Updated at 2026-09-28 23:05:16
54 minutes ago
U.S. new-vehicle sales are trending up in 2026, driven by strong buying interest from affluent households. Meanwhile, Asian brands such as Toyota and Hyundai are gaining market share and challenging General Motors’ leadership with more hybrid options at affordable prices.
Annualized total vehicle sales, which show what total annual sales would be if a month’s pace continued all year, rose to 16.80 million in August from 16.30 million in July, well above the average of 14.85 million for the 1976–2026 period.
In a recent report, Cox Automotive said it expects September sales to rise 6.5 percent from a year earlier and to stay strong for the rest of 2026.
“The market has consistently outperformed expectations despite higher fuel prices, elevated interest rates and softer consumer sentiment. As a result, we raised our full-year sales forecast and increased our outlook for both retail and fleet sales,” said Jeremy Robb, chief economist for Cox Automotive.
Charlie Chesbrough, senior economist at Cox Automotive, attributed the uptrend in new sales to strong fleet sales, wealthier vehicle buyers, and greater access to credit.
“High inflation and historically low consumer confidence have not discouraged buyers as much as might be expected. New-vehicle buyers today are more affluent, so they may not be as impacted by inflationary pressures as other consumers,” he said.
Another factor lifting new-vehicle sales is the “wealth effect” from a robust equity market, with the S&P 500 up 12 percent and Nasdaq 20 percent this year. The share of Americans who own stocks, after hovering at relatively low levels after the Great Recession, climbed to a record in 2025 and has remained there this year.
A Gallup survey found that 87 percent of U.S. adults with household income of $100,000 or higher own stocks, compared with just 28 percent of households earning less than $50,000—a gap that reinforces the concept of a K-shaped economy.
According to a separate Cox Automotive report published in December 2025, households earning more than $150,000 a year bought 43 percent of new cars sold in the United States, up from 30 percent in 2019, while households earning less than $75,000 accounted for 26 percent of sales, down from 37 percent.
That shift helped push the average new-vehicle sales price above $50,089 in August, drifting back over the $50,000 line for the first time since last December, according to Kelley Blue Book data.
The average price first crossed that threshold in September 2025, as higher-income buyers opted for larger, more expensive vehicles.
Asian Brands Gain Ground on Detroit 3
Cox Automotive expects General Motors to be the biggest beneficiary of the uptrend in new-vehicle sales, as it remains the top-selling automaker both in the third quarter and year to date.
However, the U.S. legacy automaker is facing easing sales and market share compared with a year ago amid growing challenges from Asian brands, with Toyota expected to close the gap. Hyundai Motor Group is also expected to post another robust quarter, with sales growing from both a year ago and the prior quarter, putting it ahead of Ford Motor Company.
“Asian brands are expected to account for more than half of U.S. new-vehicle sales for a second consecutive quarter, approaching record-high market share levels,” the report said. “At the same time, brands from the traditional Detroit 3 are forecast to fall to just over 36% market share, the lowest level on record.”
Asian brands have been better positioned than their U.S. counterparts to capitalize on a shift in consumer preferences that began in 2024, according to Deloitte’s 2026 Global Automotive Consumer Study.
The study found that interest in hybrids continues to strengthen as consumers balance affordability, charging access, and everyday practicality. Brand loyalty is also shifting, with strong retention in Japan and more intended brand switching in markets with many first-time owners.
Hybrid Momentum
According to the Department of Transportation, hybrid-electric vehicle sales outpaced every other vehicle category, with Toyota and Hyundai holding the first- and second-place spots, respectively, in the U.S. market.
Toyota leads this segment of the U.S. market in both scale and scope: Toyota’s electrified vehicle sales soared 35 percent in June 2026 to 122,063 units, accounting for 57.4 percent of the company’s total U.S. sales volume for the month. In some regional divisions, Toyota’s hybrid-and-electric mix reached nearly 67.9 percent.
In addition, Toyota offers consumers three categories of hybrids (18 models): regular cars, SUVs, and plug-in hybrids, including the Camry, the Corolla and Corolla Cross, Prius, the Grand Highlander, and the RAV4, with prices ranging from 24,975 to $65,795.
GM, by contrast, has no regular hybrid models. It offers just two hybrid sports vehicles—the 2027 Corvette Grand Sport X and the Corvette ZR1X—priced at $112,195 and $227,395, respectively, hardly affordable in the current K-shaped economy.
“By concentrating its efforts on a transition to an all-electric vehicle lineup, GM and its dealerships are currently missing out on a great opportunity, as U.S. consumers are flocking to hybrid cars and trucks in a bid to alleviate the rising fuel prices across the country,” Mike Deslauriers wrote in a recent post on GM Authority.
Like Toyota, Hyundai offers several models in the U.S. market, including two sedans (Elantra Hybrid and Sonata Hybrid) and three SUVs (Tucson Hybrid, Santa Fe Hybrid, and the newly launched Palisade Hybrid), with a price range of $25,000 to $44,000.
According to Hyundai Motor America’s first-half 2026 sales report, Hyundai sold a record 450,568 vehicles in the first half of the year, driven in part by momentum in its growing hybrid lineup. Hyundai reported that hybrid sales increased 74 percent year over year in June, 71 percent year over year in the second quarter, and 67 percent year to date through the first half of 2026. Electrified vehicles, including hybrid, plug-in hybrid, and electric models, accounted for 33 percent of Hyundai sales in the first half of the year.
By contrast, Ford offers two hybrid product lines, the Maverick and the F-150, with prices ranging from $46,000 to $60,000, according to Edmunds.
Traditional hybrids, which combine gasoline and electric power, continue to attract buyers due to established fueling infrastructure, improved fuel efficiency, better performance in extreme weather, and more predictable resale values, according to an August Kelley Blue Book report.
A Trend
Izhar Haq, professor of accounting at the College of Management of Long Island University, sees Asian brands’ gains as a trend, not an aberration.
“In 2024 [the last full year of U.S. car market share data], General Motors, Toyota, and Ford were the leaders in total sales volume. However, from 2018 to 2024, Asian brands increased their market share from 44.4 percent to 49 percent while U.S. brands decreased their market share from 44.4 percent to 38 percent,” he said.
“This increase in market share is the result of consumers associating reliability and value with Asian brands. Additionally, Asian brands are also the leaders in electric/hybrid vehicles.”
