The US Energy Information Administration (EIA), has informed that the share of electric and hybrid vehicle sales in the United States saw a modest increase in the second quarter of 2024 (2Q24), following a slight decline in the first quarter. According to estimates from Wards Intelligence, the combined sales of hybrid vehicles, plug-in hybrid electric vehicles (PHEVs), and battery electric vehicles (BEVs) rose from 17.8% of total new light-duty vehicle (LDV) sales in 1Q24 to 18.7% in 2Q24.

Source: EIA

Hybrid sales drive market growth

The increase in market share was primarily driven by strong sales of hybrid electric vehicles (HEVs), which saw a significant year-over-year growth of 30.7%. In 2Q24, hybrid vehicles accounted for 9.6% of the total light-duty vehicle market, up from 8.6% in 1Q24. Meanwhile, plug-in hybrid electric vehicle sales also experienced a slight increase, rising from 1.7% to 2.0% of the total LDV market year over year. BEV sales, which had slower growth in 1Q24 compared to the previous year, maintained a stable share, accounting for 7.1% of the US LDV market in 2Q24, similar to their share in 2Q23.

Luxury electric vehicles maintain strong performance

Luxury electric vehicles continued to perform well, making up 32.8% of total luxury sales in 2Q24. Overall, luxury vehicles represented 16.6% of the total light-duty market during this period. Within the electric vehicle market, luxury vehicles accounted for 73.8% of total BEV sales, 8.3% of hybrid sales, and 29.2% of plug-in hybrid sales.

BEV prices show slight decline

The average transaction price for BEVs in the United States, excluding government incentives, decreased from $57,405 in January 2024 to $56,371 in June 2024, according to Cox Automotive data. This marks a 15.9% higher price than the overall average light-duty vehicle transaction price in June 2024, down from 21.1% higher in January 2024.

Tesla's market share dips below 50%

Tesla remains the leading manufacturer in the electric vehicle market, but for the first time since the fourth quarter of 2017, its market share dropped below 50%. In 2Q24, Tesla accounted for 48.9% of the total electric vehicle market, with sales shifting towards legacy manufacturers such as Ford, Chevrolet, Hyundai, and Kia. Ford held the second-largest share at 8.0%, driven by strong sales of the Mustang Mach-E and F-150 Lightning. Chevrolet saw a shift in sales towards its newly introduced electric models, including the Blazer, Silverado, and Equinox, after discontinuing the Bolt, which had led to a decline in sales in 1Q24.

Global manufacturing trends in BEVs

Electric vehicle manufacturers are increasingly producing vehicles both domestically and globally. Wards Intelligence estimates that 74.4% of electric vehicles sold in the United States were manufactured in North America in 2Q24, down from 78.7% in 2Q23. The share of electric vehicles manufactured in South Korea and sold in the US increased from 8.0% in 2Q23 to 12.2% in 2Q24, while Japan's share rose from 2.4% to 7.2% year over year.

Impact of domestic content requirements

To qualify for the clean vehicle tax credits under the Inflation Reduction Act, manufacturers must meet domestic content requirements related to final assembly, battery components, and critical mineral inputs, which go beyond simply manufacturing in North America. As a result, not all vehicles classified as North American-made qualify for this credit, presenting challenges for both manufacturers and consumers in the evolving electric vehicle market.