U.S. consumers continued to favour hybrid vehicles and SUVs over battery-electric vehicles and sedans during the first half of 2026, according to the latest Kelley Blue Book Brand Watch reports from Cox Automotive.
While the research is based on U.S. shoppers, the findings point to consumer priorities that Canadian dealers are also seeing as affordability, fuel efficiency and vehicle versatility remain key purchase considerations. Many manufacturers have responded by expanding their hybrid offerings in Canada, particularly in high-demand SUV segments.
The Brand Watch reports, based on approximately 12,000 annual interviews with shoppers intending to purchase a new vehicle within a year, found hybrid consideration reached a record 22 per cent during the first half of 2026, up from 20 per cent a year earlier. EV consideration slipped to 10 per cent from 11 per cent over the same period.
Toyota dominated shopper interest in electrified vehicles, placing five hybrid models among the 10 most-considered electrified vehicles. The Honda Accord Hybrid and Mazda CX-50 Hybrid also entered the top 10 for the first time.
SUVs continued to strengthen their hold on the market. Luxury SUV consideration climbed to a record 79 per cent, while non-luxury SUV consideration reached an all-time high of 71 per cent. Interest in sedans declined in both segments.
Among non-luxury brands, Subaru and Kia were the only manufacturers to post year-over-year gains in shopper consideration. Cox Automotive attributed Subaru’s improvement to growing interest in the Crosstrek and Forester Hybrid, while Kia benefited from demand for value-oriented SUVs and the Carnival minivan. In the luxury segment, Audi was the only top-10 brand to improve, supported by stronger consideration for the A3 and A5 sedans.
The study also found affordability and fuel efficiency have become increasingly important to shoppers over the past five years, alongside traditional priorities such as durability and safety. Honda led non-luxury brands across nine of the 12 purchase drivers measured, while Lexus and Lincoln each topped three categories in the luxury segment.
