Key facts
- US EV sales have declined 30.7% this year, representing 6% of total sales.
- European EV sales account for 23.2% of the auto market this year.
- US consumers are increasingly choosing hybrid vehicles, with sales up 23% this year.
- Used EV sales in the US have increased by 19% through September.
- Ford's EV sales have dropped 68% this year, and GM's have fallen 43%.
US electric vehicle sales have seen a significant downturn this year, with a 30.7% decrease through September, accounting for only 6% of the total market. This decline is attributed to the expiration of a $7,500 federal tax credit a year ago, which had previously spurred demand. Many US automakers have since discontinued EV models or halted plans for new ones, and some have eliminated attractive lease deals.
In contrast, Europe has experienced a surge in EV adoption, with electric vehicles making up 23.2% of the auto market this year, an increase from 17.7% in the previous year. This growth is fueled by higher fuel prices, stringent emissions regulations that compel automakers to introduce more EV models, and the influx of Chinese automakers offering competitive pricing. Several European countries also provide tax breaks to consumers.
US consumers are increasingly turning to hybrid vehicles, with sales up 23% this year and now representing 15.6% of total sales. Dealers and analysts note that hybrids are perceived as a safer choice due to concerns about EV driving range, especially after the government incentive for EVs was scaled back. Nissan, for instance, accelerated the launch of a new hybrid system for its Rogue SUV.
The market for used EVs is also performing well, with sales rising 19% through September, indicating that budget-conscious buyers are seeking alternatives to high fuel prices. While EV-only brands like Tesla and Rivian have shown more resilience, with Tesla's US sales down 14% and Rivian's up 29%, traditional automakers like Ford and General Motors have seen steeper declines in their EV sales, down 68% and 43% respectively.