Toyota narrows US sales gap with General Motors in third quarter as hybrid demand rises

General Motors retains US sales lead

General Motors held its position as the largest auto seller in the United States during the third quarter of 2026, delivering 670,974 vehicles. The figure represents a 5.5% decline compared to the same period in 2025. GM softened the overall decline through sustained demand for affordable combustion models, including the Chevrolet Trax crossover. However, the company experienced a 62% year-on-year drop in electric vehicle sales during the quarter. Sales of specific battery models fell steeply, with Chevrolet Equinox EV deliveries dropping 92% to 1,905 units, Blazer EV sales falling 84%, and GMC Hummer EV deliveries decreasing 72%.

Toyota and Asian automakers expand share

Toyota Motor narrowed the gap with GM by delivering 633,223 vehicles across its Toyota and Lexus divisions, an increase of 0.6% year on year. Electrified vehicles, which include conventional hybrids, plug-in hybrids, fuel-cell vehicles, and battery-electric models, accounted for 363,367 units, or 57% of total company sales. For the Toyota brand alone, electrified vehicles represented over 60% of deliveries, totaling 325,227 units out of 540,167 total vehicles, a 29% increase over 2025. Sales of the Corolla hybrid climbed approximately 36% to 13,003 units for the quarter. Industry research firm Cox Automotive estimates that Asian brands will capture more than 50% of total US third-quarter sales, while the combined share of the Detroit Three automakers (GM, Ford, and Stellantis) could decline to roughly 36%.

Market shifts and Japanese brand performances

Across the wider market, elevated fuel costs driven by the conflict in Iran encouraged American car buyers to turn toward fuel-efficient hybrids and compact vehicles. Nine-month sales figures for six Japanese automakers (Toyota, Honda, Nissan, Subaru, Mazda, and Mitsubishi) rose 1% to 4,596,858 units. Toyota led the group with 1,876,614 units through September, supported by hybrid variants of the Camry sedan and 4Runner sport utility vehicle. Honda recorded a 4.7% increase to 1,149,261 units over the nine-month period, propelled by hybrid versions of the Accord and CR-V, while Nissan gained 0.6% to 716,283 units on sales of the Frontier pickup. Meanwhile, nine-month sales fell 1.5% at Subaru, 2.9% at Mazda, and 6.6% at Mitsubishi.

EV downturn and consumer affordability pressures

Total US third-quarter new-vehicle sales are estimated by Cox Automotive to reach roughly 4.1 million units, representing a 1% decline from the previous year. Industry EV demand contracted sharply following the expiration of the $7,500 federal EV tax credit in September 2025 under President Donald Trump, alongside rollbacks in federal emissions standards. August data from Cox Automotive showed total US EV sales fell 46.9% year on year to 78,895 vehicles. Vehicle affordability pressures persisted despite declining borrowing costs, as JD Power reported that rising vehicle prices and lower trade-in values kept monthly loan payments elevated. Cox Automotive recorded an average transaction price of $50,089 in August, representing a 1.9% increase from August 2025. Stellantis reported third-quarter US sales of 324,277 units, remaining virtually flat year on year, while Hyundai Motor Group is projected to reach 511,421 units, potentially passing Ford at 504,172 units.