California Hybrid Market Share Hits Record as EV Registrations Decline

Hybrid vehicles accounted for a record 22.8% of new vehicle registrations in California through the first nine months of the year, a new report shows.

However, the Q3 2026 California Auto Outlook, published by Auto Outlook Inc. for the California New Car Dealers Association, shows that zero-emission vehicle registrations fell 26.1% from a year earlier.

The report shows strong hybrid demand, as market share rose from 19.5% in 2025 to 24.1% in the third quarter of 2026. Hybrid registrations increased 13.8% through September compared with a year earlier.

Zero-emission vehicle registrations fell to 215,467 through September, accounting for 16.4% of California’s new vehicle market. The ZEV market share fell from 24.9% in the third quarter of 2025 to 13.8% in the first quarter of this year before recovering to 17.9% in the second quarter and 17.3% in the third, the report shows.

California’s ZEV market share remained more than twice the national figure of 6.2%. The state accounted for 28.9% of all ZEV registrations nationwide, according to the report.

Tesla’s ZEV registrations declined 10% through September, but its share of California’s ZEV market rose from 46.4% to 56.5%. Toyota’s ZEV registrations rose 132.5%, while Chevrolet and Ford saw declines of 55.1% and 55%.

ZEVs and plug-in hybrids accounted for 59% of small luxury SUV registrations and 42.9% of luxury car registrations, compared with 2.3% of non-luxury passenger car registrations. Hybrids accounted for 45.3% of the non-luxury passenger car segment.

The Tesla Model Y was California’s most registered new vehicle model with 86,099 registrations, followed by the Toyota Camry with 52,224.

The report also shows California’s used vehicle market outperformed the new vehicle market. Used vehicle registrations rose 2.9% through September, while registrations for used vehicles three years old or newer rose 12%. Registrations for used vehicles four to six years old fell 8%.

The quarterly report examines California new and used vehicle registration trends using data from Experian Automotive.