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Hybrids and SUVs Gaining Ground

The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.

August 5, 2026
white SUV parked in front of a body of water with a gray sky background

Both luxury and nonluxury SUVs reached all-time-high consideration levels at 79% and 71%, respectively.

Credit:

Pexels/Michal Robak

2 min to read


Today’s new-vehicle shoppers are focused on affordability, fuel efficiency and high-value vehicles, according to the latest research by Kelley Blue Book.

The KBB Brand Watch found that hybrid electric vehicles and SUVs are gaining in popularity with in-market shoppers. Hybrid consideration reached 22% in the first half of the year, a new high for the segment, up from 20% a year ago.

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In what might seem like a contradiction given demand for affordable options, including in fuel efficiency, both luxury and nonluxury SUVs reached all-time-high consideration levels at 79% and 71%, respectively. Meanwhile, nonluxury sedan consideration hit a record low of 25%, and fully electric vehicles fell 1% to a 10% share.

"With affordability challenging many households, the strength of SUVs, which are typically more costly, was a surprise at first,” said Cox Automotive senior manager of market and customer research Vanessa Ton.

“But we recognize that value-oriented SUVs are the heart of the market right now, providing shoppers with the right mix of attributes and usability."  

Brandwise, Subaru and Kia were the only nonluxury brands to increase shopper consideration, and Audi was the only top 10 luxury brand with year-over-year improvement.

"The limited number of brands that gained consideration in the first half highlights how selective vehicle shoppers have become,” Ton said.

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Of the 12 factors that the study uses to measure shopper consideration, Honda was the top-ranked brand in nine, including four of the top five most-cited factors. No single brand dominated the luxury segment, but Lexus and Lincoln each held top positions in three out of the 12 factors.


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