The year 2024 was marked by a “sales slowdown” in the all-electric vehicle sector, with sales not meeting the once-optimistic projections of the auto industry. However, despite this slowdown, EVs accounted for a record 8.1% of new-car purchases in the U.S., totaling 1.3 million units sold. According to Cox Automotive’s Kelley Blue Book annual U.S. sales report, the electric vehicle market share grew from 7.8% in 2023 to 8% in 2024, with sales continuing to rise.
The fourth quarter of 2024 saw a significant boost in electric vehicle sales, driven by end-of-year lease and finance deals, as well as concerns about potential changes to EV tax credits under the new presidential administration. Overall, electric vehicle sales increased by 7.3% annually, with notable contributions from General Motors, Honda Motor Co., Hyundai Motor Group, and Ford Motor Company.
However, Tesla experienced a decline in sales volume compared to the previous year, while VW and Mercedes-Benz also reported lower sales volumes in 2024. Despite these challenges, Tesla retained its position as the top-selling electric vehicle manufacturer in 2024.
The top 10 best-selling electric models in the U.S. in 2024 included the Tesla Model Y, Tesla Model 3, Ford Mustang Mach-E, Hyundai Ioniq 5, Tesla Cybertruck, Ford F-150 Lightning, Honda Prologue, Chevrolet Equinox, Cadillac Lyriq, and Rivian R1S.
The success of the Model Y and Model 3 can be attributed to Tesla’s leading charging network and competitive pricing. The Mustang Mach-E held onto its third-place position, benefitting from updates and compatibility with the Supercharger network. The Ioniq 5 led Hyundai to become the second-largest EV seller in the U.S., while the Cybertruck outsold the F-150 Lightning in the electric pickup truck segment.
Despite facing challenges, GM had a successful year in EV sales, with the Honda Prologue emerging as a surprise hit. The Rivian R1S also maintained its position in the top 10, demonstrating positive growth despite production setbacks.
Looking ahead, analysts predict that one out of every four vehicles sold in the upcoming year will be electrified in some form. With advancements in battery technology and increasing consumer interest in electric vehicles, the electric car market is expected to continue expanding.
In conclusion, while the electric vehicle sector faced challenges in 2024, the overall growth and adoption of EVs indicate a promising future for the industry. As more automakers invest in electric vehicle technology, the market is poised for further expansion in the coming years.