By Christopher Otts

There's a clear sign that Americans are tired of high gas prices: Hybrid cars and trucks are now hotter than ever.

Elevated gas prices, sparked by the U.S.-Israel conflict in Iran, helped drive a 33% jump in hybrid sales in May compared with last year, according to data from Motor Intelligence -- a bright spot in the otherwise stagnant new-car market.

At Stanley Subaru in Ellsworth, Maine, many customers are choosing hybrid versions of the Forester SUV and Crosstrek hatchback, though they cost a few thousand dollars more than their gas-only counterparts.

"The hybrids have been a godsend," said Mark Politte, the store's dealer principal. They are "hotter than the non-hybrids."

The sales are helping automakers stoke interest at a time when new-car sales are generally weak.

Overall new vehicle sales are down 4.4% in 2026 through May, and are expected to continue sliding this year from prepandemic highs, with many buyers put off by high interest rates, broader economic uncertainty and average prices hovering around $50,000.

However, with gas rising to $4.26 a gallon on average, more Americans are opting to pay a few thousand dollars extra to get a new car that also uses less fuel. In 2026 thus far, hybrid sales are up 17% compared with last year.

Hybrids pair a small electric battery with a conventional gas engine to cut fuel consumption. Some have bigger batteries that require plugging-in to charge, but those have fallen out of favor since the Trump administration gutted fuel-economy regulations. The overwhelming majority of hybrids sold in the U.S. don't have a plug.

The interest in hybrids comes as many automakers in the U.S. pivot from purely electric vehicles, after the Trump administration stripped away tax incentives for buying them. Despite rising gas prices, new EV sales remain depressed, down 25% this year, according to Motor Intelligence.

In a survey last month, Cox Automotive found that new-car shoppers are responding to high gas prices primarily by considering more fuel-efficient gas cars or hybrids, as opposed to EVs.

"Shoppers want to save on gas, but the path of least resistance for most is a more efficient version of what they already know," the company said. Sales of used EVs, meanwhile, have seen a sizable boost this year.

Yet sales of conventional hybrids -- which don't plug in and don't require consumers to do anything differently -- are booming, in part because some of the most popular vehicles in the U.S. now come exclusively as hybrids.

Toyota, having already eliminated gas-only versions of its Sienna minivan and Camry sedan, is selling its RAV4 compact SUV exclusively as a hybrid for the 2026 model year. The RAV4 was the bestselling vehicle, other than pickup trucks, in the country last year.

The Jeep Cherokee SUV is returning to the U.S. this year with its first hybrid offering -- and no gas-only option.

About 30% of buyers of the Subaru Forester SUV have opted for the hybrid version so far this year, according to Motor Intelligence. The hybrid Forester starts at $36,180, compared with $33,195 for the equivalent gas-only version. Subaru says the hybrid battery improves the vehicle's mileage by up to 40%.

Subaru decided to add hybrid options in its two most popular models well before gas prices surged, as part of a plan to widen its lineup and give environmentally conscious customers a fuel-saving option that doesn't require big lifestyle changes, said Troy Poston, vice president of sales for the Japanese company's U.S. arm.

The company moved production of the Forester hybrid from Japan to its factory in Indiana, a signal that it expects hybrids to stick around.

"We see this as a growing trend -- not only this year, but every year moving forward," Poston said.

Other carmakers who have been late to hybrids in the U.S., such as Nissan and Volkswagen, are rushing to add them to their lineups.

Another holdout has been General Motors, the U.S.'s largest automaker by volume. GM's only hybrid on sale in the U.S. is a six-figure Corvette sports car.

The Detroit automaker's chief executive, Mary Barra, has described fully electric vehicles as the company's "North Star," saying that it is currently focused on reducing the cost of its EVs as adoption grows over time. The automaker has also said it is planning some hybrids, but its smaller gas vehicles like the Chevrolet Trax and Trailblazer satisfy demand for fuel efficiency.

"We have announced in the past that we will have some hybrids in key segments," Barra said in January. "So I think we're going to have the right portfolio."

Write to Christopher Otts at christopher.otts@wsj.com

(END) Dow Jones Newswires

June 03, 2026 17:11 ET (21:11 GMT)

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