Hyundai’s Hybrid Boom Signals a Direct Challenge to Toyota in the U.S.

Electrified Models Led the Charge

Hyundai has recorded its third consecutive month of record total sales in the U.S. after posting a six percent year-over-year increase in February 2026, with 65,677 units sold. Electrified models helped drive the result, rising 56 percent, while the hybrid lineup surged by 79 percent — both marking the brand’s best-ever February totals.

This reflects strong U.S. demand for hybrid vehicles, particularly as all-electric cars have seen slower adoption amid shifting government policies. Hyundai plans to introduce at least 18 hybrid models by 2030 — a key move as rivals like Toyota continue to double down on hybrid technology.

Meanwhile, the Korean marque’s EV lineup also posted a six-percent year-over-year sales increase, with the Ioniq 5 leading the way ahead of the Ioniq 6 and the three-row Ioniq 9.

The Standout Performers

According to the press release, the increase in hybrid sales was driven by the Tucson HEV, Elantra HEV, and Santa Fe HEV. The Tucson — a rival to models like the Toyota RAV4 and Chevrolet Equinox — also led Hyundai’s overall February 2026 U.S. sales with 17,277 units sold, followed by the Santa Fe (11,344), Elantra (10,089), and Palisade (10,025).

On the other hand, two of the worst-selling models — excluding EVs — were the Venue and Santa Cruz. The Venue is the brand’s most affordable model, with a starting price of $20,550 excluding destination fees. Meanwhile, the Santa Cruz is a compact pickup that appears to have lost ground in its segment to the Ford Maverick. Production is reportedly set to end next year, although Hyundai is expected to introduce a new mid-size pickup before 2030.

Momentum Expected to Continue

Commenting on the record-setting sales performance last month, Hyundai Motor America President and CEO Randy Parker said, “Hyundai’s third straight month of record total sales reflects the remarkable strength of our lineup and the growing confidence customers place in our brand.” He added, “With momentum building across our EV, HEV, and ICE offerings, we expect this strong trajectory to continue.”

Likewise, corporate sibling Kia recorded strong hybrid sales, up 53 percent year over year and marking its best February performance. While many of its electrified models, such as the Sportage Hybrid, are imported from South Korea, Kia recently began assembling its first hybrid in the U.S. — the all-new Telluride — at its Georgia plant.