U.S. Electric Vehicle Market Share Declined in Q4 2024: EIA

The share of hybrid vehicles, plug-in hybrid electric vehicles and battery electric vehicles across the U.S. declined to 18 percent of total new light duty vehicle sales in the U.S. during the first quarter of 2024 compared to 18.8 percent in the last quarter of 2023, according to a May 14 report published by the U.S. Energy Information Administration.

The decline in market share can be attributed to lower battery electric vehicle sales, which declined from 8.1 percent of the total light duty vehicle market in the last quarter of 2023 to seven percent in the first quarter of 2024.  The U.S. light duty vehicle market is seasonal and total sales historically declined in the first quarter, following an end of year sales rise. Battery electric vehicle sales rose by seven percent in the first quarter of 2024 compared to the first quarter in 2023, following 13 successive quarters of double-digit growth. The slowdown in growth can be attributed to an uneven decline in the overall new light duty vehicle sales market, where luxury vehicle sales declined more than mass market sales and a decline in mass market battery electric vehicle sales.

U.S. luxury vehicle sales were in the 12 to 15 percent of the overall light duty vehicle market between 2014 and 2020, but increased to reach 18 percent in 2023. On the other hand, mass market vehicle sales have been 10 percent below pre COVID-19 pandemic levels as of the first quarter of 2024. This irregular recovery led to the rise in battery electric vehicle sales share in 2022 and 2023. During the first quarter of 2024, this trend inverted when luxury vehicles declined to 16 percent of the market.

Generally, battery electric vehicles have not performed as well in the mass market sector as they have in the luxury sector across the U.S. Manufacturers have released mass market battery electric vehicles and increased production capacity over the last few years, but the Chevrolet Bolt production and the 64 percent reduction in sales year-on-year for the that particular vehicle hauled the mass market battery electric vehicle share down in the first quarter of 2024.