The hybrid sedan buyers keep choosing over SUVs


The American car market moves fast, and even huge nameplates can disappear almost overnight. Sedans like the Ford Fusion used to be everywhere, but the SUV boom pushed a lot of longtime favorites completely out of the conversation.

Midsize sedans were supposed to be one of the biggest casualties of that shift. Instead, one Japanese hybrid sedan somehow keeps getting more popular while many of its rivals either faded away or lost serious ground.

At a time when most buyers are moving toward crossovers, this sedan keeps proving there’s still a huge audience for something comfortable, efficient, affordable, and easy to live with.

In order to give you the most up-to-date and accurate information possible, the data used to compile this article was sourced from Toyota and other authoritative sources, including CarEdge, iSeeCars, and TopSpeed.


Front 3/4 shot of a 2025 Toyota Crown


The Toyota That Has More Luxury Than An Acura (And It’s Not a Lexus)

This Toyota packs more luxury than an Acura, with premium features, a refined ride, and upscale tech—all without the Lexus badge.

The Toyota Camry still rules the midsize sedan world

Why the Camry keeps surviving while other sedans disappear

There’s a good chance people will look back at the Toyota Camry’s run and wonder how it stayed this dominant for so long. Very few cars in the U.S. have managed to stay this consistent for this many years without slipping out of the spotlight.

While rivals like the Accord have had their ups and downs, the Camry has pretty much stayed locked in at the top. That steady, no-drama formula is exactly why it’s been America’s best-selling sedan for more than two decades.


Static side profile shot of a red 2026 Toyota Camry SE AWD.

toyota-logo.jpeg

Base Trim Engine

2.5-liter Four-Cylinder Hybrid

Base Trim Transmission

CVTi-S CVT

Base Trim Drivetrain

Front-Wheel Drive

Base Trim Horsepower

184 HP @6000 RPM

Base Trim Torque

163 lb.-ft. @ 5200 RPM

Make

Toyota

Model

Camry

Segment

Midsize Sedan



2025 was a record-breaking year for the Camry

Close up of the trunk on a 2025 Toyota Camry
Close up of the trunk on a 2025 Toyota Camry
Credit: Toyota

The Camry basically defines what the midsize sedan segment looks like at this point. It’s the default answer, and even now its momentum doesn’t really look like it’s slowing down.

In 2025, the Camry Hybrid hit 316,185 sales, up 54.1 percent year-over-year, marking its strongest year ever. That’s especially impressive considering it’s now a hybrid-only lineup and still managed to grow.

The only Toyota that outsold it was the RAV4, which is the best-selling vehicle in the U.S. overall, and outside of that it’s just pickup trucks and a few top crossover SUVs ahead of it. Put simply, sedans rarely compete at this level anymore, and the Camry is basically in a league of its own.

Going hybrid-only unlocked a new level of success

2026 Toyota Camry XSE Engine Credit: Toyota

The ninth-generation Camry arrived for the 2025 model year with one big shift: it went hybrid-only. Dropping the traditional gas-only option raised a few eyebrows at first, with plenty of critics calling it a risky move.

In reality, buyers didn’t seem to care in the way critics expected. In the first half of 2025 alone, the Camry still moved 155,330 units, almost identical to the 155,242 it sold the year before with a full engine lineup.

The transition has been so smooth that some owners probably don’t even think of it as a hybrid. What looked like a gamble from the outside turned out to be exactly the direction buyers were already ready for.


Front 3/4 view of a navy blue 2025 Toyota Prius driving on a country road.


Toyota Is Struggling to Keep Pace With Its Own Hybrid Success

With global demand for its gas-electric vehicles soaring, Toyota can’t produce them quickly enough.

The new Camry doubled down and strengthened its lead

Why decisiveness paid off for Toyota in the hybrid era

While other automakers are still figuring out where they stand, Toyota has stayed pretty locked in with the Camry. That kind of clear direction has paid off, and it shows in how confidently the sedan continues to perform.

At the same time, those sales also say a lot about the state of the sedan market overall. Realistically, there are only a handful of models left that still compete at a meaningful level, and everything else is just trying to keep up.

The only other sedans still in the mix

Front 3/4 view of a white 2025 Toyota Corolla Sedan parked with the ocean in the background. Credit: Toyota

Looking at the 25 best-selling vehicles in the U.S. in 2025, only three are sedans. The Toyota Corolla comes in at 11th with 248,088 units sold, while the Honda Civic follows at 14th with 238,661 units.

Beyond those two, most of the old-school sedan players have slipped out of the conversation entirely. Models like the Nissan Altima, which once posted strong numbers, don’t even make the top tier anymore.

Dynamic front 3/4 shot of a red 2026 Honda Civic Sedan Sport Hybrid driving in a city. Credit: Honda

The Corolla and Civic have stuck around because they still hit what compact sedan buyers care about most: value, efficiency, and low running costs. That alone is enough to keep them relevant in a shrinking segment.

But once you look at the Camry’s 316,185 units, it’s clear the midsize space is a different story entirely. The Camry has basically become the default pick, and for most shoppers, it’s the first—and often only—name that comes to mind.

What the Camry’s benchmark really says about the market

Dynamic rear 3/4 shot of a gray 2026 Toyota Camry driving through a city. Credit: Toyota

The Camry’s hybrid setup hits a sweet spot that buyers actually care about. It pairs a 2.5-liter four-cylinder with a 134-horsepower electric motor for a combined 225 horsepower in front-wheel-drive models.

What makes it stand out is that it does all of that while still returning around 38 mpg combined, which is the real win here. It’s basically Toyota’s formula in a nutshell: strong efficiency without forcing drivers to give up everyday usability or performance.

Side profile shot of a gray 2025 Toyota Camry XSE driving up a hill in a city. Credit: Toyota

With a $29,300 starting price, the 2026 Camry LE comes in well below the $33,795 Honda Accord Sport Hybrid. That gap matters more than it looks, especially in a segment where pricing is a big part of the decision.

While other brands are still refining what a modern sedan should be, the Camry has already landed on a formula that works. It keeps things simple with a reliable hybrid setup, strong value, and solid build quality without pushing the price up too far.

It sounds straightforward, but very few sedans actually pull it off at this level. And judging by its momentum, the Camry doesn’t look like it’s slowing down anytime soon.


Close up of the front end of a 2025 Toyota Camry


The Ultimate Bang For Your Buck Hybrid in 2025

This 2025 hybrid delivers top-tier fuel efficiency, advanced tech, and reliability—all at a price that makes it the ultimate value choice.

Hybrid tech is now firmly mainstream

How efficiency became the default instead of the exception

Front 3/4 action shot of a 2012 Toyota Prius Credit: Toyota

A couple of decades ago, hybrids weren’t exactly welcomed with open arms. Most buyers and even a lot of the industry treated them as niche or a bit experimental at best.

Fast-forward to today, and that’s completely flipped. What started with cars like the Toyota Prius has turned into mainstream tech, with hybrid systems now showing up across more models than ever—and the sales data makes it pretty clear why.

What the sales figures are actually saying

Close-up shot of the charging port with a charging cable plugged in on a silver 2020 Porsche Cayenne Turbo S E-Hybrid. Credit: NetCarShow.com

2025 quietly turned into a big year for hybrids, even if it didn’t always get framed that way. Hybrid sales jumped 36 percent in Q2 alone, making up roughly 22 percent of all new light-duty vehicle sales.

That’s not a small shift in taste—that’s a full-on change in what buyers are considering normal. Back in 2022, electrified vehicles as a whole were sitting at just 12.9 percent of the market, rising to 16.3 percent in 2023 before continuing upward.

A lot of that momentum has only grown as EV incentives have faded, with hybrids increasingly seen as the practical middle ground. They’re also no longer positioned as premium tech either, with average prices around $33,255 compared to nearly $50,000 for a new vehicle overall, making them one of the more realistic paths into electrification for everyday buyers.

Hybrids are eating into EV market share

Front 3/4 action shot of a 2025 Toyota Camry Credit: Toyota

Everyone wants to cut fuel costs, and for a while that usually meant going fully electric. But with the federal EV tax credit gone, hybrids have started picking up even more attention.

It’s not hard to see why. They deliver solid fuel economy without the hassle of charging, which makes them an easy middle ground between gas cars and full EVs. And if you can charge at home, plug-in hybrids push that even further with short-range electric driving for daily use.

Even so, conventional hybrids still made up around 70 percent of electrified vehicle sales in 2025, showing just how dominant they’ve become. For a lot of buyers, they’re simply the most practical, low-stress option—and the brands that figured that out early are now in a strong position.



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ZDNET’s key takeaways

  • Trusted quality data is the backbone of agentic AI.
  • Identifying high-impact workflows to assign to AI agents is key to scaling adoption.
  • Scaling agentic AI starts with rethinking how work gets done. 

Gartner forecasts that worldwide AI spending will total $2.5 trillion in 2026, a 44% year-over-year increase. Spending on AI platforms for data science and machine learning will reach $31 billion, and spending on AI data will reach $3 billion.

The global agentic AI market will reach $8.5 billion by the end of 2026 and nearly $40 billion by 2030, per Deloitte Digital. Organizations are rapidly accelerating their adoption of AI agents, with the current average utilization standing at 12 agents per organization, according to MuleSoft 2026 research. This rate is projected to increase by 67% over the next two years, reaching an average of 20 AI agents. 

Also: How to build better AI agents for your business – without creating trust issues

According to IDC, by 2026, 40% of all Global 2000 job roles will involve working with AI agents, redefining long-held traditional entry, mid, and senior level positions. But the journey will not be smooth. By 2027, companies that do not prioritize high-quality, AI-ready data will struggle to scale generative AI and agentic solutions, resulting in a 15% loss in productivity. While 2025 was the year of pilot experiments and small production deployments of agentic AI, 2026 is shaping up to be the year of scaling agentic AI. And to scale agentic AI, according to IDC’s forecast, companies will need trustworthy, accessible, and quality data. 

Scaling agentic AI adoption in business requires a strong data foundation, according to McKinsey research. Businesses can create high-impact workflows by using agents, but to do so, they must modernize their data architecture, improve data quality, and advance their operating models. 

McKinsey found that nearly two-thirds of enterprises worldwide have experimented with agents, but fewer than 10% have scaled them to deliver measurable value. The biggest obstacle to scaling agent adoption is poor data — eight in ten companies cite data limitations as a roadblock to scaling agentic AI. 

Also: AI agents are fast, loose, and out of control, MIT study finds

McKinsey identified the top data limitations as primary constraints that companies face when scaling AI, including: operating model and talent constraints, data limitations, ineffective change management, and tech platform limitations. 

Data is the backbone of agentic AI

Research shows that agentic AI needs a steady flow of high-quality, trusted data to accurately automate complex business workflows. Successful agentic AI also depends on a data architecture that can support autonomy — executing tasks without human intervention. 

Two agentic usage models are emerging: single-agent workflows (one agent using multiple tools) and multi-agent workflows (specialized agents collaborate). In each case, agents will rely on access to high-quality data. Data silos and fragmented data would lead to errors and poor agentic decision-making. 

Four steps for preparing your data 

McKinsey identified four coordinated steps that connect strategy, technology, and people in order to build strong foundational data capabilities. 

Also: Prolonged AI use can be hazardous to your health and work: 4 ways to stay safe

  1. Identify high-impact workflows to ‘agentify’. Focus on highly deterministic, repetitive tasks that deliver value as strong candidates for AI agents. 

  2. Modernize each layer of the data architecture for agents. The focus on modernization should support interoperability, easy access, and governance across systems. The vast majority of business applications do not share data across platforms. According to MuleSoft research, organizations are rapidly adopting autonomous systems. The average enterprise now manages 957 applications — rising to 1,057 for those furthest along in their agentic AI journey. Only 27% of these applications are currently connected, creating a significant challenge for IT leaders aiming to meet their near-term AI implementation goals. 

  3. Ensure that data quality is in place. Businesses must ensure that both structured and unstructured data, as well as agent-generated data, meet consistent standards for accuracy, lineage, and governance. Access to trusted data is a key obstacle. IT teams now spend an average of 36% of their time designing, building, and testing new custom integrations between systems and data. Custom work will not help scale AI adoption. The most significant obstacle to successful AI or AI agent deployment is data quality, cited as the top concern by 25% of organizations. Furthermore, almost all organizations (96%) struggle to use data from across the business for AI initiatives.  

  4. Build an operating and governance model for agentic AI. This is about rethinking how work gets done. Human roles will shift from execution to supervision and orchestration of agent-led workflows. In a hybrid work environment, governance will dictate how agents can operate autonomously in a trustworthy, transparent, and scaled manner. 

The work assigned to AI agents 

McKinsey highlighted the importance of identifying a few critical workflows that would be candidates for AI agents to own. To begin, an end-to-end workflow mapping would help identify opportunities for agentic use. McKinsey found that AI adoption is led by customer service, marketing, knowledge management, and IT. It is important to identify clear metrics that validate impact. Teams should identify the data that can be reused across tasks and workflows.

Also: These companies are actually upskilling their workers for AI – here’s how they do it

McKinsey concludes that having access to high-quality data is a strategic differentiator in the agentic AI era. Because agents will generate enormous amounts of data, data quality, lineage, and standardization will be even more important in the agentic enterprise. And as agentic systems scale, governance becomes the primary level for control. The data foundation will be the competitive advantage in the agentic era. 





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