Hybrids Eclipse EVs in California as Electric Car Demand Wanes
In a surprising shift in the electric vehicle industry, hybrid vehicles have surpassed pure battery-electric cars in California, traditionally America’s EV stronghold. This is according to the latest data from the California New Car Dealers Association (CNCDA). The report, released on Tuesday, July 21, shows that hybrids made up almost one in every four cars registered in California in the second quarter of 2026, comfortably outperforming EVs, which accounted for a mere 17.8% of total quarterly registrations.
The change has been significant. Tesla registrations in California plummeted by 24% year-on-year in Q1 2026, despite its Model Y retaining the title of the state’s best-selling vehicle overall with 22,907 units. In contrast, hybrids soared past 87,000 registrations in Q1, capturing over 20% market share. The Toyota Camry Hybrid ascended to the number-two spot on California’s best-sellers list, second only to the Model Y.
Industry experts attribute the expiration of the federal $7,500 EV tax credit in September 2025 as the main trigger, coupled with ongoing concerns about charging infrastructure and affordability. In response, California Governor Gavin Newsom has proposed a $200 million state tax rebate program to compensate for the lost federal incentive and rejuvenate dwindling EV sales.
Source: Bloomberg – Hybrids Boom as EVs Fall Out of Favor Even in California