US electric and hybrid vehicle sales hit record market share in Q3 2024
December 11, 2024
The US Energy Information Administration (EIA) has reported that the share of electric and hybrid vehicle sales in the United States reached a new record in the third quarter of 2024.
According to estimates from automotive industry analyst Wards Intelligence, combined sales of hybrid vehicles, plug-in hybrid electric vehicles, and battery electric vehicles (BEVs) increased from 19.1% of total new light-duty vehicle (LDV) sales in the second quarter of 2024 to 19.6% in the third quarter of 2024.
The rise in market share for electric and hybrid vehicles was mainly attributed to sales of hybrid electric vehicles. Sales of battery electric vehicles (BEVs) decreased, with their market share falling from 7.4% of the US LDV market in the second quarter of 2024 to 7.0% in the third quarter of 2024. In contrast, the share of hybrid vehicle sales rose, with hybrids accounting for a record 10.8% of the US LDV market in the third quarter of 2024.
BEVs remained popular in the luxury vehicle segment, making up 35.8% of luxury LDV sales in the United States during the third quarter of 2024. However, the share of luxury BEVs among total BEV sales has been declining as sales in the non-luxury market have risen, reaching the lowest level since the second quarter of 2017. Nonetheless, luxury vehicles still accounted for 70.7% of BEVs sold in the US during that quarter, while luxury vehicles comprised 10.3% of hybrid vehicle sales. According to Cox Automotive, the average transaction price for a new BEV, before applying any consumer or government incentives, was $56,351 at the end of the third quarter of 2024. This figure is approximately 16% higher than the overall industry average price.
Tesla continues to lead the US BEV market, holding the number one position with a market share of 48.8%. However, this marks the second consecutive quarter in which its share has fallen below 50%. The Model Y and Model 3 remain key drivers of Tesla’s sales, and the recent release of the Tesla Cybertruck contributed to an increase in sales during the third quarter of 2024, outselling all its large truck competitors, including the Rivian R1S, Rivian R1T, Ford F150 Lightning, Chevy Silverado EV, Hummer EV, and GMC Sierra EV.
Ford retains the second-largest share of the BEV market, but this share declined to 6.9% in the third quarter of 2024, down from 7.94% in the previous quarter. Meanwhile, Chevrolet has experienced a surge in sales, particularly from the newly introduced Equinox model and the ongoing success of the Blazer model. As a result, Chevrolet has surpassed Hyundai and now holds the third-largest share of the BEV market with 5.8% of sales in the third quarter of 2024.
EV manufacturers produce vehicles both domestically and internationally. According to estimates from Wards Intelligence, in the third quarter of 2024, 78.9% of all BEVs sold in the United States were produced in North America. Additionally, 7.3% were manufactured in South Korea, while 5.3% were made in Germany.
Tax credits
To qualify for the clean vehicle tax credits under the Inflation Reduction Act, manufacturers must meet specific domestic content requirements related to final assembly, battery components, and critical mineral inputs that extend beyond simply manufacturing in North America. Therefore, not all vehicles that are classified as manufactured in North America will qualify for this tax credit.
While these requirements apply to EV purchases, they are less stringent for EV leases. Many EV purchases that do not qualify for the clean vehicle tax credit may still be eligible for the tax credit when leased under the commercial clean vehicle credit, offering consumers a broader range of eligible EV models.
