Demand for High-Mileage Hybrids, EVs Help Keep June Auto Sales Afloat

Sales of electrified vehicles helped keep the industry afloat in June and during the second quarter, with Korean brands, in particular, delivering record sales numbers.

South Korean automakers Hyundai, Kia and Genesis reported record sales during the second quarter and the month of June, providing some much needed momentum to a market that had been showing signs of strain in recent months.

Showing some renewed momentum of its own, Stellantis also gained ground but General Motors and Toyota Motors North America reported mixed result.

The growing popularity of hybrids in the face of rising gasoline prices helped give manufacturers a push last month and throughout the second quarter.

Manufacturers face growing price concerns

June sales could have been better, industry animals cautioned, but for the reality of rising prices. According to the Automotive News/Catalyst IQ Vehicle Price and Inventory Tracker, the average new vehicle’s marketed price hit an all-time record $51,974 on June 30.

That put a hefty strain on buyers, a record 36.5% of all financed new-vehicle purchasers in the second quarter, taking on loans of 73 months or longer, reported Edmunds. That was up from 27.3% a decade prior. Fully 23.9% of Q2 financers signed on for loans of 84 months or longer, another record.  

The average monthly payment on new-vehicle purchases hit a new record of $777, slightly above last quarter’s record $773 per month.

Hybrids and EVs prop up the market

June saw gas prices finally begin to settle back after the surge triggered by the U.S.-Iran War. After peaking at $4.63 in mid-May, according to GasBuddy.com. The figure was down to $3.804 on June 30, the tracking service reported.

Still, hybrids and battery-electric vehicles saw a surge in demand last month. Final figures have yet to be released by all manufacturers but hybrids, in particular, were expected to have made up something in the range of 15% of total new vehicle demand.

Fuel prices weren’t the only reason why. “It helps that there are so many more hybrids on the market” now, said Sam Fiorani, lead analyst with AutoForecast Solutions, “and more are coming every day.”

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Hyundai and Kia have a big month in June

That’s helped propel Korean automakers to new records. Hyundai Motor America reported its best-ever June total sales of 77,555 units, an 11% increase compared with June 2025. “June capped off a record-setting month and delivered the strongest quarter and first half in Hyundai Motor America history,” said Randy Parker, president and CEO, Hyundai Motor North America.

“This growth was driven by broad-based demand across our portfolio,” he added, “with strong contributions from both our core SUV and sedan lineup and continued gains in hybrids.”

Kia America also reported it is on a record-setting pace with June’s sales total increasing by 10% to 70,507 units. Year-to-date, Kia sales have increased by 3% to 430,727 units, setting all-time records for both June and first-half sales in the U.S. market.

“Kia’s record-breaking first half sales performance was seen across our entire lineup of sedans and SUVs.  The results illustrate our ability to react to shifting market demands by resetting our showrooms with the right mix of ICE, hybrid and electrified models,” said Eric Watson, vice president, sales operations, Kia America.

Hyundai’s luxury brand Genesis also scored record sales for June, for the second quarter and for the first half of 2026, it reported

Stellantis, GM claim successes

Stellantis has shown some improved momentum in recent months, rebounding from several years of weak demand. The automaker’s sales were up 6% in the second quarter, while June sales increased 10% year-over-year. The Ram and Chrysler brands led the way.  Overall, the company sold 634,187 vehicles in the first half of 2026, an increase of 5%.  “We delivered incremental market share gains over the first half of 2025,” said Michael Orange, head of U.S. retail sales and network performance. “

General Motors was leader in U.S. sales for the second quarter amid ongoing strong demand for pickup trucks and SUVs. But its overall sales actually dropped 4% for the period, to 714,896 vehicles, which reflected the smaller EV market, the discontinuation of some nameplates, and some inventory constraints. But it offset those concerns by taking the lead in full-size pickup and large SUV sales.

“Our business is performing well, and customer demand is resilient, especially for our trucks and SUVs. The depth, breadth and appeal of our vehicle portfolio allows us to lead the market in sales, while maintaining discipline on inventory, pricing and incentives to deliver strong margins,” said Duncan Aldred, GM President of North America.

Toyota sales reflect weakness at Lexus

Toyota Motor North America reported June 2026 U.S. sales of 212,793 vehicles, up 10.1%, but sales for the second quarter increased by a more modest 1.1% to 673,971 units

Toyota division was the Japanese automaker’s powerhouse, reporting June sales of 183,627 vehicles, up 11.2 % on a volume basis. For the quarter, For the full second quarter, however, Toyota Division reported sales of 585,211 vehicles, up 2.6 % on a volume basis. Lexus division posted June sales of 29,166 vehicles, up 3.9 % on a volume basis. For the quarter, Lexus division reported sales of 88,760 vehicles, down 7.5%.

Andrew Gilleland, senior vice president, Automotive Operations Group, Toyota Motor North America, said, “Strong demand and disciplined inventory management have fueled consistent gains versus a year ago.”

As for the rest of the Japanese manufacturers, Honda and Nissan have yet to report but Mitsubishi announced  a 5% sales increase for the second quarter, while Subaru reported an 18% percent increase in June, and a 4.5 drop for the first half of 2026.