US share of electric and hybrid vehicle sales rises in Q2 2024

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The share of electric and hybrid vehicle sales in the U.S. increased in the second quarter of 2024 (2Q24) after a slight decline in the first quarter of 2024. Combined U.S. sales of hybrids, plug-in hybrids, and battery electric vehicles (BEVs) increased from 17.8% of total new light-duty vehicle (LDV) sales in the first quarter of 2024 to 18.7% in the second quarter of 2024, according to Wards Intelligence estimates.

The slight increase in EV and hybrid market share was primarily driven by hybrid electric vehicle sales, which increased 30.7% year-on-year. Hybrid vehicle sales accounted for 8.6% of the total light-duty vehicle market in Q1 2024 and rose to 9.6% in Q2 2024. Plug-in hybrid electric vehicle sales also increased slightly from 1.7% to 2.0% of the total light-duty vehicle market year-on-year. After slowing growth in Q1 2024 compared to the previous year, hybrid electric vehicle sales in Q2 2024 accounted for 7.1% of the U.S. light-duty vehicle market, a similar share to Q2 2023.

Luxury electric vehicle sales continued to perform well, accounting for 32.8% of total luxury vehicle sales in Q2 2024. Luxury vehicle sales in the United States accounted for 16.6% of the total light vehicle market in Q2 2024, while luxury vehicles accounted for 73.8% of total battery electric vehicle sales, 8.3% of hybrid vehicle sales, and 29.2% of plug-in hybrid vehicle sales.

The average U.S. electric vehicle transaction price, excluding any government incentives, fell from $57,405 in January 2024 to $56,371 in June 2024, according to data from Cox Automotive. Electric vehicle transaction prices were 21.1% higher than the average overall light-duty vehicle transaction price in January 2024 and 15.9% higher in June 2024.

Although Tesla remains the leading manufacturer in the EV market, it no longer holds a majority share of EV sales. Tesla’s market share was 48.9% of the total EV market in Q2 2024, falling below 50% of light-duty vehicles sold for the first time since Q4 2017. Sales have shifted to traditional manufacturers such as Ford, Chevrolet, Hyundai, and Kia. Ford accounted for 8.0% of EV sales in Q2 2024, the second-largest share, driven by sales of the Mustang Mach-E and F-150 Lightning. Chevrolet’s sales have shifted to its new Blazer, Silverado, and Equinox electric models after the manufacturer’s decision to discontinue the Bolt, a decision that led to a decline in overall sales in Q1 2024.

Electric vehicle manufacturers produce vehicles both domestically and globally. According to Wards Intelligence estimates, 74.4% of EVs sold in the United States were manufactured in North America in Q2 2024, compared to 78.7% in Q2 2023. On a year-over-year basis, the total share of EVs sold in the United States that were manufactured in South Korea rose from 8.0% in Q2 2023 to 12.2% in Q2 2024, while the share of EVs manufactured in Japan rose from 2.4% to 7.2%.

To qualify for the Clean Vehicle Tax Credit under the Inflation Reduction Act, manufacturers must comply with domestic content requirements for final assembly, battery components, and key metal inputs that extend beyond just manufacturing in North America. Therefore, not all vehicles classified as manufactured in North America qualify for this credit.

Main contributor: Monica Abboud. Article originally published on Today in Energy.