Hybrids are booming. About 22% of new cars sold in the U.S. in the first quarter of last year were hybrids per U.S. data, and that number has likely only increased since—especially at Hyundai and Kia. Both brands have released their figures for January, and Hyundai, in particular, moved 60% more hybrids last month compared to January 2025. By contrast, Toyota, which had already saturated its lineup with electrified vehicles, saw a slight dip in hybrid sales.
Hyundai entered the year with a new hybrid in the family, by way of the 2026 Palisade. The three-row SUV has been one of the brand’s most popular products in recent years, but the recently discontinued first-gen never offered a hybrid powertrain. Hyundai shifted 8,604 of them in total, hybrid and gas-only, last month, compared to 6,687 a year prior, translating to a 29% gain for the nameplate. The smaller Santa Fe also saw a 9% bump, rising from 8,296 to 9,011 units.
Kia also enjoyed a strong January, to the tune of 64,502 total unit sales. Of those, electrified models sold 45% better versus a year earlier, though it’s worth noting that “electrified” also includes fully electric cars, like the EV9. In any case, this should portend good things for Kia through 2026, as the new Telluride Hybrid, unlike its Palisade counterpart, hasn’t landed at dealers yet.
This early 2026 performance shows that Hyundai and Kia still had a ways to go in terms of boosting hybrid penetration of their overall sales mix, and we’ll see how much further they can push that.
Eventually, their stories may sound more like Toyota’s. Including Lexus’ products, the Japanese automaker moved 79,561 electrified vehicles last month. That’s very healthy, but it’s actually 6% fewer than in January of the previous year. Those electrified cars nevertheless comprised 45% of everything Toyota sold last month, continuing a streak of hybrid dominance that defined Toyota’s 2025 here in North America.
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