Electric Vehicles Reach New Milestone in US Market
A Shift Towards Sustainability
The US automotive industry has reached a significant turning point, with electric vehicles (EVs) and hybrid models accounting for 20% of new car and truck sales in 2024. This marks a major milestone in the adoption of “green” vehicles, although the pace of growth has been slower than expected.
Electrified Vehicles Take Center Stage
According to Motor Intelligence, over 3.2 million electrified vehicles were sold last year, comprising 1.9 million hybrid vehicles, including plug-in models, and 1.3 million all-electric models. While traditional vehicles with gas or diesel internal combustion engines still dominate the market, their sales have declined to 79.8%, falling below 80% for the first time in modern automotive history.
Tesla Leads the EV Pack
Tesla continues to be the leading player in the EV market, although its annual sales have declined, and its market share has dropped to around 49%. The Tesla Model Y and Model 3 were the best-selling EVs in 2024. Hyundai Motor, including Kia, follows closely behind with 9.3% of EV market share, followed by General Motors at 8.7%, Ford Motor at 7.5%, and BMW at 4.1%.
A Competitive EV Market
The EV market in the US is highly competitive, with 24 models posting year-over-year sales increases, 17 models being all-new to the market, and 27 decreasing in volume. The uncertainty surrounding the future of EV sales is palpable, pending potential policy changes by the incoming administration.
Federal Incentives in Jeopardy
Currently, sales of EVs and plug-in hybrid electric vehicles are subsidized by a federal credit of up to $7,500 for the purchase of one of these vehicles. However, President-elect Donald Trump could remove this incentive, along with other support for EVs, casting a shadow over the industry’s future.
Looking Ahead to 2025
Despite the uncertainty, Cox Automotive expects 2025 to set another record for EV volume, with around 10% of new vehicle sales being electric. Including hybrids, the company predicts that one out of every four vehicles sold will be electrified this year. As the industry continues to evolve, one thing is clear: electric vehicles are here to stay.
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