Toyota narrows GM's US sales lead as hybrids surge on high fuel prices
General Motors remained the top US auto seller in Q3 2026 despite a 5.5 per cent sales dip, but Toyota Motor narrowed the gap as soaring gasoline prices pushed buyers toward hybrids. Cox Automotive expects Asian brands including Toyota and Honda to account for over half of new vehicle sales in the p
General Motors held on to its position as the top US auto seller during the third quarter of 2026 despite a 5.5 per cent dip in sales to 670,974 units, but Toyota Motor continued to chip away at the lead as high gasoline prices pushed buyers toward hybrids. Toyota's overall third-quarter sales rose marginally to 633,223 units, with sales of the popular Corolla hybrid jumping nearly 36 per cent from a year earlier to 13,003 units, according to industry research firm Cox Automotive.
The Detroit Three — GM, Ford Motor and Stellantis — could see their combined market share dip to around 36 per cent in the quarter, Cox estimated, while hybrid-heavy Asian brands including Toyota and Honda are expected to account for more than half of new vehicle sales in the period. Hybrids have emerged as a top choice for consumers as the Iran war sends oil and fuel prices soaring, with regular gasoline prices hitting a national average of US$4.43 a gallon in September, according to AAA, compared with US$3.20 a year earlier.
Cox also expects Hyundai Motor Group to surpass Ford in quarterly US sales for the first time, forecasting third-quarter sales of 511,421 vehicles for Hyundai, compared with 504,172 for Ford. Ford is set to report quarterly sales on Friday. Honda's quarterly sales jumped 9 per cent from a year earlier, and the automaker has stuck with offering lease deals while other automakers have moved away from the strategy. "Leasing gives us a really good cadence of customers who are coming back to market," said Lance Woelfer, Honda's vice president of automobile sales.
While borrowing costs have declined, this has done little to ease affordability pressures as higher new vehicle prices and lower trade-in values push monthly payments higher, said research firm JD Power. The average transaction price for a new vehicle rose 1.9 per cent to US$50,089 in August from a year earlier, according to Cox. GM's affordable models, including the Trax crossover, helped the Detroit automaker cushion the impact, but overall sales dipped 5.5 per cent.
GM's electric vehicle sales fell 62 per cent from a year earlier, when demand was boosted by consumers buying ahead of the expiration of the US$7,500 federal tax credit in September 2025. EV sales have since fallen sharply across the industry. Stellantis' third-quarter sales stayed roughly flat at 324,277 units from a year ago. Cox estimates overall third-quarter US sales at about 4.1 million units, down about 1 per cent from a year earlier.
