Electric vehicle demand surges in Q4

Electric vehicle (EV) sales gained major momentum in the market in the final quarter of 2024 – setting the stage for what could be a very promising year for EVs in 2025.    

The details: Amid some lingering apprehension about electric vehicles, several automakers wrapped 2024 with some of their best sales figures yet in the sector.

GM’s EV sales rose 50% in Q4 to 43,982 units. For the year, the automaker’s electric vehicle sales surged 125% to more than 114,000 units.

Toyota and Lexus electric and hybrid vehicles increased 53% over the year in 2024, hitting the 1-million-unit mark for the first time.   

Ford’s hybrid and electric vehicle sales rose by 26.5% and 16.3%, respectively, in Q4. For the year, the company’s electric vehicle sales jumped 38% to a record 285,291 units, including 98,000 BEVs and more than 187,000 hybrids.

Hyundai Motor Company and Honda – which have steadily been ramping up their EV and hybrid offerings – reported an increase in EV/hybrid sales of 64% for Q4 (Hyundai) and 19% for the year (Honda), respectively. 

And although Tesla’s Q4 sales rose modestly thanks to generous incentives — overall sales for the year declined 1.1% in 2024 to 1.7 million deliveries. However, it’s important to note — Tesla still commands over 50% market share for EVs in the U.S. 

Looking ahead: Several mass-market automakers vying for more share of the EV market seem well poised to navigate the ongoing challenges that have affected the sector to date to build on the momentum of Q4. However, as CDG News has previously noted, there are a few new factors looming that could thwart those efforts in 2025.

• President-elect Donald Trump has been adamant about ending the $7,500 federal tax credit for EVs. His influence could also prompt the rollback of other measures aimed at luring car buyers to electric vehicles.

• Varying economic factors – which can impact vehicle affordability and are often difficult to predict – could have a more detrimentally affect EV sales, given the higher costs typically associated with the vehicles.   

Bottom line: Even amid the surge in EV sales in Q4 and in 2024 overall, there’s a degree of uncertainty as to exactly how the EV market will play out in 2025. But for now — the threat of losing the federal EV tax credits is springing buyers into action. 

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