Over the past several years, one could sympathize with auto industry CEOs feeling a dizzying case of political whiplash when it comes to electric vehicles.
Just a year ago, manufacturers were juggling a tricky balancing act: producing enough EVs to meet looming EPA regulations while coaxing skeptical consumers to take the plunge. Fast forward to today, and the impending end of the $7,500 federal tax credit on September 30 is sparking a last-minute buying frenzy—yet the long-term path beyond that date remains anything but clear.
Yes, the EV tax credit is ending, and Americans are rushing to claim it-–but the real story isn’t just the spike in electric vehicle sales. Hybrids, diesels, and other alternative-fuel vehicles are quietly nibbling away at gas-powered vehicles’ market share. The irony? While EVs dominate headlines and political debates, the so-called clean energy revolution is creeping forward behind the scenes, proving that meaningful change doesn’t always happen in the spotlight—and giving the ‘drill, baby, drill’ crowd something to think about.
In August 2025, gas-powered vehicles’ inventory and market share were down 5.2 and 7.2 points, respectively, compared with a year earlier. Even with the current EV buying rush, the electric segment has only picked up 1.7 points of share. Meanwhile, hybrids are quietly stealing the show, gaining 3.6 points—more than double the EVs’ growth.
It’s worth noting that gas-powered vehicles still accounted for 74.5% of sales last month, but that’s down from 81.5% a year ago—a sharp reminder that even the mightiest incumbents can lose ground when change creeps in from unexpected corners.
The real takeaway? EVs are getting the spotlight—and drawing the fire—but it’s the quieter march of hybrids, diesels, and other alternative-fuel vehicles that is truly reshaping the market. The clean energy revolution is winning, just not in the way the headlines suggest.
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