- EVs' share of the U.S. light-duty vehicle market dropped from 7.4% in Q2 to 7% in Q3.
- Combined sales of electrified vehicles increased, thanks to strong sales of non-plug-in hybrids.
- EV sales year over year are still up compared to 2023.
Although Americans bought more new electric vehicles in the third quarter of 2024 than in the previous quarter, EVs had a lower share of the light-duty vehicle (LDV) market in Q3. Their share dropped from 7.4% in Q2 to 7% in Q3. Still, sales and market share are both up over Q3 2023.
The overall share of electrified vehicles (hybrids, plug-in hybrids and EVs) increased ilast quarter, helped by the surge in popularity of non-plug-in hybrids, which made up 10.8% of the entire U.S. LDV market. The Energy Information Administration (EIA) says this is a new record.
Tesla still holds nearly half of the market (48.8%), followed by General Motors, Hyundai and Ford. The EIA also quotes information from Wards Intelligence, which says 78.9% of all EVs bought in the U.S. in Q3 were made in North America, 7.3% came from South Korea, and 5.3% were German-made.
This huge share of American-made EVs is a direct result of the Inflation Reduction Act, which changed the requirements for EVs to qualify for the $7,500 federal tax credit. Before, most EVs sold in the U.S. qualified for the full credit. But the requirements were tightened for 2024, making the list of eligible EVs much shorter (and it could get even shorter). They now have to be made in the U.S., with battery components and minerals sourced only from certain places—they can’t come from China, for instance. Of course, all of these restrictions do not apply to vehicles that are leased due to a loophole in the legislation.
Most EVs purchased in Q3 (70.7%) were luxury models, which is still a lot, but the EIA says it’s the lowest level recorded since Q2 2017. That's because the data considers Tesla a luxury manufacturer, and the company still accounts for around half of all EVs sold. Plus, there's an acute lack of affordable EVs in the U.S., so the average price of a new EV before incentives in Q3 was $56,351, or 16% higher than the national average.
If we just look at sales numbers, more EVs were delivered in the U.S. this year than in 2023. Over 346,000 EVs were sold through the third quarter of 2024, an increase of 5% over 2023. EVs accounted for 8.9% of all new cars sold, an increase from 7.8% last year.
Ford is in fourth place for the number of EVs sold this year in America, but it could be picking up the pace after a record-breaking November when sales amounted to 11,000 units (21% up year-over-year). It was actually second behind Tesla last month, although one good month alone wasn’t enough to move it into the top three.
Honda also had strong sales toward the end of the year, selling more than 6,800 Prologues in November, marking a 66% rise over October. The GM-built Prologue sold over 25,000 units from January through November, placing it among the country’s top five best-selling EVs.
Some automakers seem to have caught some extra sales wind as the year draws to a close. It will be interesting to see the end-of-year data, given that this was widely regarded as a year when EV sales cooled, mainly affected by high prices and the stricter federal tax credit rules. With a new president who is less friendly toward EVs and foreign imports than his predecessor, 2025 will also be one to watch out for on the EV scene.
