We’ve seen examples of it everywhere in recent months: automakers are revising their electrification plans. And Bank of America's new 2025 Car Wars report backs that up with numbers. No fewer than 58 new hybrid models will launch in North America between 2026 and 2029, it finds. This clear trend confirms a slowdown in the transition to 100-percent electric vehicles.
Full electrification takes a step back
Electric ambitions have hit a wall. Stagnating demand, high costs and political and tariff uncertainties are creating a difficult environment for EVs. While those accounted for 44 percent of new models launched in 2023, the study finds that they will account for only 34 percent by 2029. Meanwhile, the share of hybrids is set to climb to 28 percent, up from 17 percent in 2023.
Why the change?
Consumers are hesitant about EVs, their main concerns involving pricing, charging infrastructure and range. Hybrids, on the other hand, offer a pragmatic solution: owners aren’t dependant on charging stations, but still benefit from fuel savings. They're cheaper than BEVs and easier for motorists new to electrification to adopt.
Who's leading the charge?
General Motors is preparing nine hybrids, including electrified versions of the Cadillac Escalade, GMC Yukon and Chevrolet Tahoe. Stellantis, Hyundai, and Toyota are planning 8 to 9 new models each. Nissan and Mercedes-Benz, conversely, remain cautious with only one hybrid planned each.
A survival strategy?
With the announced end of federal EV incentives and a loosening of environmental standards, automakers are no longer obligated in the short term to invest heavily in models that, for now, still harm their profitability. Hybrids are becoming a lifeline... and an acceptable compromise between economy and environment.
Towards a significant market share
By 2028, hybrid vehicle sales in the United States are expected to reach 3.4 million units, representing 20 percent of the market. And Bank of America believes that’s just the beginning.
