Hybrids are driving much of the sales growth at the brands that offer them, and automakers that were slow to build them are working to catch up. For instance, General Motors (GM) is now planning hybrid versions of its large SUVs after years of prioritizing fully electric vehicles.
On today’s edition of CBT Live, John Murphy, Founder and Managing Partner of Murphy Automotive Partners, joins us to discuss how GM’s hybrid SUVs could stack up against the competition and what the move means for the automaker’s market position.
Murphy said the move toward more hybrid options reflects what consumers are buying. In the large crossover segment, hybrids were a little under 10% of sales in 2025, and Murphy forecasts that share reaching about 40% by model year 2031, before factoring in GM’s announcement.
The Chevy Traverse, GMC Acadia and Buick Enclave are reportedly among the first models under consideration. Murphy expects a mid-cycle update adding the hybrid option within the next 18 to 24 months. While GM has the technology overseas and a long history with hybrids, which should help it catch up quickly, Murphy expects the hybrids to protect GM’s roughly 20% share of the large crossover segment more than grow it, with some room to gain on pricing.
Ultimately, Murphy expects the market to hold near a 16 million SAAR, helped by at least 10 million units of pent-up demand that used vehicles are currently satisfying. Dealers who make the most of used supply and run fixed ops hot should stay profitable, though gross profits per unit have largely normalized, so the back end of the business has to work hard to hold profitability. He sees some risk that next year could be slightly down because little new product is coming and higher prices tend to push consumers back, but doesn’t expect the SAAR to rise soon given the current product and price.
