Toyota Narrows Gap on GM as Gas Prices Drive Record Hybrid Demand

General Motors managed to hang onto its crown as America's top-selling automaker through the third quarter, but Toyota is closing in fast. Driven by skyrocketing gas prices and an industry-wide pivot away from pure electric vehicles, buyers are flocking back to fuel-efficient hybrids—giving Asian import brands a massive boost while domestic giants lose ground.

According to data from Cox Automotive and automaker reports, the combined market share for the Detroit Three (GM, Ford, and Stellantis) is expected to slip to roughly 36% for the quarter. Meanwhile, hybrid-heavy Asian brands like Toyota, Honda, and Hyundai Motor Group are projected to command more than half of all new vehicle sales in the U.S.

$4.40 Gas Drives Shoppers to the Hybrid Pump

The main catalyst behind the shift sits right on the gas station marquee. Geopolitical tensions and regional conflict have sent global oil markets into a tailspin, pushing regular gasoline prices to a national average of $4.43 per gallon in September—up sharply from $3.20 a year ago, according to AAA data.

With fuel costs eating away at household budgets, consumers are ditching gas-guzzlers and pricey battery-electric vehicles in favor of practical gas-electric hybrids. Toyota has been the biggest beneficiary of this trend.

While GM's overall third-quarter deliveries dipped 5.5% to 670,974 units, Toyota Motor North America edged up slightly to 633,223 vehicles, pulling within a razor-thin 38,000 units of GM’s top spot. The real story, however, sits in Toyota's electrified lineup: sales of Toyota and Lexus hybrids jumped 28.5% year-over-year, accounting for a staggering 57.4% of the company's total U.S. volume. Demand for the high-efficiency Corolla Hybrid surged nearly 36% alone, reaching 13,003 deliveries for the quarter.

EV Post-Tax-Credit Hangover and the Detroit Slump

GM’s quarterly slip wasn't entirely due to a lack of shoppers, but rather a harsh hangover from the electric vehicle market. The automaker’s EV sales cratered 62% compared to Q3 of last year—a quarter when buyers rushed to grab vehicles before the $7,500 federal EV tax credit officially expired in September 2025. With subsidies gone and high interest rates still lingering, pure EV demand across the industry has chilled considerably.

GM managed to cushion the blow thanks to budget-friendly, entry-level crossovers. Models like the Chevrolet Trax and Buick Envista saw solid double-digit gains as buyers looked for low-cost alternatives.

Further down the sales charts, Hyundai Motor Group is on track to pull off a landmark victory, with forecasts projecting the Korean automaker will surpass Ford in quarterly U.S. volume for the first time ever (511,421 units for Hyundai/Kia versus 504,172 for Ford). Meanwhile, American Honda rode a 9% sales jump on the back of aggressive lease deals—a strategy many rivals abandoned—and record hybrid volume for the Civic and Accord.

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