Electric vehicle sales surpass 1.3 million units in the United States during the year 2024

The U.S. electric vehicle (EV) market is now comparably competitive with China and Europe, according to a report by Cox Automotive. In 2024, the top 10 selling EVs in the U.S. were dominated by Tesla models, with the Model Y and Model 3 accounting for more than 40% of all EVs sold.

The Ford Mustang Mach-E was the best-selling non-Tesla EV, followed by the Hyundai Ioniq 5. Other notable mentions include the Ford F-150 Lightning, Honda Prologue, Chevrolet Equinox, Cadillac Lyriq, and Rivian R1S.

The Honda Prologue, launched in March 2024, sold more than 33,000 units in its first year on the market. The sales of electric vehicles received a boost in 2024 due to the introduction of new EV models from General Motors, Honda Motor Co., Hyundai Motor Group, and Ford Motor Co.

EV sales accounted for 8.1% of total automotive sales in 2024, up from 7.8% in 2023. Q4 sales of electric vehicles set a new quarterly sales record with 365,824 units sold. Of the 68 mainstream EV models tracked by Kelley Blue Book, 24 models saw year-on-year sales increases, 17 were new to the market, and 27 decreased in volume.

Improving charging infrastructure and the introduction of 15 additional EV models are expected to contribute to continued sales growth in 2025. Sales growth was driven by strong automaker incentives, leasing deals, federal and state programs, and the introduction of new EV models.

However, the incoming Trump administration may potentially end EV tax credits, which could potentially slow sales growth. Conversely, changes in EV tax credits, if implemented, would take time to take effect and may boost sales in the short term due to the possibility of lost incentives.

Despite a year-on-year decrease in sales volume, Tesla remained the automobile brand that sold the most electric vehicles in 2024, with the Model Y and Model 3 remaining the two best-selling EVs. However, both saw notable sales declines. On the other hand, sales of electric vehicles from Hyundai Motor Group and Ford Motor Co. increased in 2024.

Interestingly, the automobile brand that sold the most electric vehicles in the U.S. besides Tesla in 2024 was BYD, a leading Chinese manufacturer, gaining increasing market share especially in Germany and Europe. Volkswagen and Mercedes-Benz posted lower sales volumes in 2024 compared to 2023.

Cox Automotive's report aligns with automakers' Q4 sales numbers, many of which reported record-breaking domestic sales aided by surging demand for EVs. Over the past 48 months, more than 2.5 million EVs have been sold in the U.S. With continued efforts in improving infrastructure, introducing new models, and government support, the future of the U.S. EV market looks promising.