TSLA373.7105.65%
GM77.090-5.66%
F12.145-0.035%
RIVN12.4300.09%
CYD25.300-0.59%
HMC34.2500.19%
TM196.5302.47%
CVNA60.3001.59%
PAG212.2500.25%
LAD299.8906.72%
AN161.8901.5%
GPI243.2303.95%
ABG172.1302.19%
SAH64.0301.29%
TSLA373.7105.65%
GM77.090-5.66%
F12.145-0.035%
RIVN12.4300.09%
CYD25.300-0.59%
HMC34.2500.19%
TM196.5302.47%
CVNA60.3001.59%
PAG212.2500.25%
LAD299.8906.72%
AN161.8901.5%
GPI243.2303.95%
ABG172.1302.19%
SAH64.0301.29%
TSLA373.7105.65%
GM77.090-5.66%
F12.145-0.035%
RIVN12.4300.09%
CYD25.300-0.59%
HMC34.2500.19%
TM196.5302.47%
CVNA60.3001.59%
PAG212.2500.25%
LAD299.8906.72%
AN161.8901.5%
GPI243.2303.95%
ABG172.1302.19%
SAH64.0301.29%

Hybrid sales surge as new EV registrations fall in California

New CNCDA data show hybrid registrations climbing while Newsom’s MyFirstEV rebate aims to reignite the EV segment.

Hybrid sales surge as new EV registrations fall in California

On the Dash:

  • Hybrid vehicles hit a record 22.1% share of California’s new-vehicle market in the first half of 2026.
  • EV registrations fell 24.8% as gas prices climbed and the federal tax credit expired.
  • California’s new MyFirstEV rebate offers up to $3,500 off first-time EV purchases starting this summer.

Hybrid vehicles captured 22.1% of California’s new-vehicle market through the first half of 2026. That’s the highest share on record, according to the California New Car Dealers Association (CNCDA), sourced from Experian Automotive. Hybrid share climbed to 23.2% in the second quarter alone, up from 20.9% in the first quarter.

Electric vehicle registrations declined 24.8% in the first half compared with a year earlier, falling to 137,430 units. Zero-emission vehicle (ZEV) share stood at 15.9% through June. The second quarter showed signs of stabilizing, with ZEV share climbing to 17.8% from 13.8% in the first quarter.

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The shift comes as rising gas prices squeeze household budgets. The war in Iran has pushed pump prices higher nationwide. The national average stood at $4.02 a gallon Tuesday, while California’s average reached $5.52, according to AAA.

Every hybrid registered in the state during the first half came through a franchised new-car dealership, according to CNCDA. Franchised dealers accounted for 75.7% of combined hybrid, ZEV and plug-in hybrid registrations statewide.

Toyota’s Camry and RAV4, along with Honda’s CR-V, ranked among the state’s top-selling hybrid models. Tesla’s Model Y remained California’s best-selling vehicle overall, with 54,327 registrations and 57.5% of the luxury compact SUV segment.

Tesla’s California registrations rose 11.8% in the second quarter to 45,953 units, even as year-to-date sales remain down 6.5%. Tesla accounted for 56.7% of the state’s ZEV registrations through June, up from 45.6% a year earlier. Notably, California’s new-vehicle market fell 7.7% through June, with 864,848 vehicles registered compared with 936,543 a year earlier.

However, California is moving to counter the EV slowdown as Governor Gavin Newsom last week announced a new instant rebate program, MyFirstEV, in partnership with 13 automakers.

The program offers $3,500 off new electric vehicles priced up to $50,000. Used EVs priced up to $25,000 qualify for a $1,750 rebate. The rebate is available to any California resident buying or leasing a first ZEV.

The state is funding MyFirstEV with a $135.5 million investment. Participating automakers are matching that dollar-for-dollar, for a combined $270 million in point-of-sale savings. The California Air Resources Board (CARB) is overseeing the program, which is expected to launch later this summer.

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