Electric vehicle sales charge ahead, defying market doubts

Electric vehicle (EV) sales appear to be gaining traction despite industry concerns about waning consumer interest. 

According to the latest data from Cox Auto, EV sales grew by 11% year-over-year in Q3 and surged to record highs for both volume and market share. 

By the numbers:

• Roughly 346,309 EVs were sold in Q3 2024, which is a 5% increase over Q2. 

• The share of EV sales, among all vehicles sold in Q3, rose to the highest number ever recorded at 8.9%.

What they’re saying: “While year-over-year growth has slowed, EV sales in the U.S. continue to march higher,” said Stephanie Valdez Streaty, director of Industry Insights at Cox Automotive. “The growth is being fueled in part by incentives and discounts, but as more affordable EVs enter the market and infrastructure improves, we can expect even greater adoption in the coming years.”

Digging deeper:

• EV incentives in Q3 averaged more than 12% of the average transaction price (ATP), compared to 7% industry-wide for all vehicles sold in the quarter.

• The “leasing loophole” enabled all EV buyers to qualify for substantial discounts with government-supported incentives.

• The average cost of an EV only rose 1% year-over-year in Q3, with an ATP just over $57,000. The industry-wide ATP in Q3 was around $48,000.

Brand breakdown: While overall sales declined across the industry, most brands saw a noteworthy uptick in EV demand in Q3.

• GM’s EV sales rose nearly 60% to 32,095 in Q3, posting the second-best EV sales numbers for Q3 2024. GM’s surge in the sector was driven by the strong sales of its Cadillac, Chevrolet, and GMC brands.

• Tesla remains the firm EV leader by a mile. Sales were up 6.6%, due in large part to a boost from its newly introduced Cybertruck. The EV automaker sold more than 16,000 Cybertrucks, with an ATP of $116,000.

• Hyundai Motor Group’s electric vehicle sales remained flat year-over-year at 29,609.  

• Ford was fourth in EV sales with 23,509, followed by Honda and Acura with 15,000 EV sales. 

Why it matters: Despite talk of an EV market slowdown, the reality is more nuanced. Yes, forecasts have been adjusted, but with an additional 1 million EVs set to be sold this year, the market is still expanding. While price concerns and infrastructure improvements are ongoing challenges, the segment's upward trajectory — fueled by aggressive incentives and increasing consumer interest — shows that the EV transition is far from stalling.

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