U.S. automakers reported mixed second-quarter vehicle sales results, with companies offering hybrid models significantly outperforming those without hybrids. Toyota Motor reported a 1.1% sales increase led by a roughly 20% rise in electrified vehicle sales, while General Motors, which offers only one low-volume hybrid, saw sales decline 4.2% during the same period. The sales divergence stems from high gas prices—up more than 20% year-over-year according to AAA—and declining demand for all-electric vehicles, prompting consumers to prioritize fuel efficiency and lower operating costs. Cox Automotive and J.D. Power forecast second-quarter industry sales to be roughly level with the prior year, with Cox projecting a 0.5% decline and J.D. Power expecting a 0.7% increase.
Toyota and Hybrid Leaders Report Strong Second-Quarter Growth
Global hybrid leader Toyota Motor on Wednesday reported a 1.1% increase in second-quarter sales, driven by approximately 20% growth in electrified vehicle sales. Hyundai Motor posted a 4% sales increase during the quarter, with hybrid sales surging 67% during the first half of the year. Honda Motor reported an 8.4% overall sales increase in the second quarter, supported by record electrified vehicle sales. Kia, up approximately 3%, recorded a 152% increase in hybrid sales during the second quarter.
"Hybrids are definitely our growth engine right now," Hyundai and Genesis North America CEO Randy Parker said Wednesday during a call. "Hybrids are really, really taking off right now as consumers, I think, are prioritizing fuel efficiency and lower operating costs due to high gas prices."
Gas prices increased more than 20% compared to the same period last year, according to AAA. The juxtaposition in hybrid availability between GM and Toyota prompted Cox Automotive last week to note that the Japanese automaker is closing its sales gap with the Detroit-based company. "At these rates, and what we're seeing right now in the selling rates, GM may be looking over their shoulder here when we get to the year's end, that Toyota could potentially overtake them as the top selling manufacturer here in the U.S. market," Charlie Chesbrough, senior economist and senior director of industry insights at Cox Automotive, said during a media event.
Stellantis and Nissan Post Gains Without Extensive Hybrid Lineups
Outliers in the second quarter include Chrysler parent Stellantis, which reported a 5.9% sales increase, and Nissan Motor, up 9.6%. Both automakers offer limited electrified models, including hybrids and/or EVs, but are implementing sales-focused turnaround plans.
"At a time when customers are focused on maximizing the value of every dollar they spend, our lineup is delivering with strong quality, capability and the right mix of products," Tiago Castro, Nissan Americas senior vice president of sales and marketing, said Wednesday in a release. Cox Automotive expects Ford Motor, which reports results Thursday and has been grappling with lost pickup truck production, to decline 11.5% during the second quarter. Cox also expects Tesla to be off more than 20% during the second quarter, as EV demand last year spiked ahead of expectations of the Trump administration ending up to $7,500 in consumer incentives for EV purchases.
General Motors Reports 4.2% Sales Decline in Second Quarter
GM reported that EV sales during the second quarter declined 33% compared to last year. Each of GM's brands experienced year-over-year sales declines during the second quarter, led by a 19.2% drop in Cadillac sales. Buick declined 7.5%, Chevrolet fell 3.9%, and GMC reported a 0.3% decline.
Despite the declines, including its Chevrolet Silverado pickup truck, a GM executive described the company's business as "performing well," noting continued discipline regarding sales incentives and highly profitable full-size pickup trucks. "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," GM North America President Duncan Aldred said in a release.
GM reported that despite a 7.7% decline in Silverado pickups for the quarter, including a 25.9% drop for its electric truck, the company still expects to have gained market share in the full-size truck segment during the period. GMC Sierra pickup trucks posted a 5% sales increase, including double-digit increases for electric and light-duty 1500 models. GM recorded its best combined sales of Silverado and Sierra full-size pickup trucks in 20 years in 2025, leading to a sixth consecutive year of leading that highly profitable U.S. segment.
FAQ
Why did Toyota stocks perform better than GM stocks in the second quarter?
Toyota reported a 1.1% sales increase driven by approximately 20% growth in electrified vehicle sales, while GM saw a 4.2% decline in overall sales and a 33% drop in EV sales. The performance gap reflects consumer preference for hybrid vehicles amid gas prices that increased more than 20% year-over-year, according to AAA.
What caused the surge in hybrid vehicle sales during the second quarter?
Hyundai and Genesis North America CEO Randy Parker stated on Wednesday that hybrids are "really, really taking off right now as consumers, I think, are prioritizing fuel efficiency and lower operating costs due to high gas prices." Hyundai reported a 67% increase in hybrid sales during the first half of the year, while Kia recorded a 152% increase in hybrid sales during the second quarter.
