EV adoption edges upward as legacy automakers gain share

The EV market continued to grow in March, with a slight uptick in sales volume and shopper consideration holding steady.  

The details: A study by J.D. Power reveals that the EV market share as a percentage of total vehicle sales volume was 9.3% in March 2025, up 0.9 percentage points from 8.4% in March 2024.

• EVs currently account for 9.3% of the total new vehicle market, down from 9.6% in February and up from 8.4% in March 2024.

• The growth rate of the EV market aligns with J.D. Power’s projection of 9.1% overall retail share for 2025, which is flat with 2024 totals and one percentage point higher than 2023 volumes.

Why it matters: The industry’s EV strategy hinges on the assumption that demand will keep expanding—but this report shows the growth is incremental, not explosive. And with auto tariffs threatening to raise costs and federal EV incentives in political limbo, automakers can’t afford to misread the pace of adoption.

Zooming in: The report indicates that even amid the uncertainty of President Trump’s EV policy plans, the market will continue to grow, as J.D. Power’s Elizabeth Krear, VP of electric vehicle practice, tells Car Dealership Guy via email—with consideration holding steady.

• 23% of car shoppers actively in the market for a new vehicle indicated in March that they are “very likely” to consider buying or leasing an EV in the next 12 months.

• March 2025 consideration is slightly lower than February (23.3%) and up half a percentage point from March 2024 when 22.5% of buyers indicated they were “very likely” to consider an EV.

• The highest EV consideration in March was among consumers earning more than $100,000 per year and those living in the West and Northeast. 

Worth noting: Tesla $TSLA ( ▼ 4.94% )  remained the most considered EV brand in March at 18.2% of car shoppers indicating that they are “somewhat likely” or “very likely” to opt for a Tesla EV. That’s up from 17.7% in February, but down from 20.5% in March 2024, as Tesla continues to lose market share.

Bottom line: Tariffs will influence the total auto industry. Therefore, it will be more important than ever for buyers and those selling EVs to understand the total cost of ownership of an EV compared to an ICE vehicle, relative to federal and state incentives, still available in the EV sector, explains Krear.

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