US EV and hybrid sales reached a record high in Q3 2024.

According to the US Energy Information Administration (EIA), electric vehicle and hybrid sales have consistently risen in the US, achieving a record high in Q3 of 2024.

According to Wards Intelligence estimates, hybrid, plug-in hybrid electric vehicles (PHEVs), and battery electric vehicles (BEVs) combined accounted for 19.6% of total new light-duty vehicle sales in Q3. The rate has surged to 21.3%, surpassing the previous high of 19.1% recorded in Q2 and establishing a landmark milestone for the growth trajectory of electric vehicles.

Hybrid vehicles were the primary driver of our Q3 growth. Although BEV’s gross sales experienced a slight decline, the brand maintained its significant presence in the light-duty car market, with its market share shrinking marginally from 7.4% in Q2 to 7.0% in Q3. While hybrids currently account for 10.8% of the market share, this dominance may be considered excessive.

Despite being a niche market segment, BEVs still dominate the luxury category, accounting for 35.8% of premium vehicle sales in Q3 2024. Despite this, the premium segment of BEVs is declining as more affordable options enter the market. During Q3, a record-low 70.7% of electric vehicles (BEVs) available in the US were luxurious models, the lowest such percentage since Q2 2017, whereas only 10.3% of hybrids sold could be classified as luxury vehicles. Despite their benefits, BEVs come with a substantial price tag: As of Q3, the average transaction value for a brand-new battery-electric vehicle (BEV) stood at $56,351, representing a 16% premium over the overall average price for new cars, according to Cox Automotive.

Despite being the pioneering leader in the battery-electric vehicle (BEV) market, Tesla’s dominance is gradually eroding. Tesla’s market share slipped to 48.8% for the second straight quarter, falling below the 50% mark. Tesla’s top-selling models, Mannequin Y and Mannequin 3, continue to drive significant sales, while the brand also experienced a boost from the popular Cybertruck, which outpaced its major electric truck competitors – Rivian R1S, Ford F-150 Lightning, and Chevrolet Silverado EV – in terms of sales.

Despite Ford’s decline, it still managed to secure a strong second-place finish in the BEV market, with a slight dip in share to 6.9% in Q3, down from 7.94% in Q2. With its new Equinox and Blazer models propelling strong sales, Chevrolet leapfrogged Hyundai to secure the number three position in the market rankings, claiming a 5.8% share of industry sales.

Many of the battery-electric vehicles (BEVs) available in the US market are manufactured at domestic facilities, allowing for shorter supply chains and reduced carbon footprints. According to Wards Intelligence estimates, in Q3, 78.9% of battery-electric vehicles (BEVs) offered within the US were manufactured domestically in North America, while the remainder originated from international locations such as South Korea (7.3%) and Germany (5.3%).

The Inflation Reduction Act’s crystal-clear electric vehicle tax credits are also shaping the EV landscape. To meet requirements, producers seek to fulfill home content material needs not just for final product specifications, but also for battery components and key minerals. Manufacturing an automobile in North America is not a straightforward process.

Despite these requirements being more lenient for leased vehicles, the business clean car credit still offers lease incentives for many electric vehicles that wouldn’t otherwise qualify for purchase incentives, thereby expanding the options available to consumers looking to get behind the wheel of an environmentally friendly ride.

Despite these developments, modifications to the federal EV tax credit threshold starting January 1, 2025, are forecasted. According to Joel Levin, government director of Plug In America, last month…

The outcome of a fresh administration and congressional leadership remains uncertain, with no clear indicators or precedents to guide our understanding of their plans and initiatives.

Now is an excellent time to consider purchasing either a brand-new or pre-owned electric vehicle (EV), given the growing interest in these eco-friendly options. With numerous fashion options readily available in the market, buyers can often combine incentives offered by state governments, local authorities, and utility providers with the federal EV tax credit, resulting in a truly attractive offer for automotive customers.

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