U.S. Electric and Hybrid Vehicle Sales Reach Record High in Q3 2024: EIA

U.S. sales of hybrid, plug-in hybrid, and battery electric vehicles rose from 19.1 percent of total new light duty vehicles sales in the second quarter of this year to a record 21.1 percent in the third quarter, according to a Dec.4 report published by the U.S. Energy Information Administration. The increase in electric vehicle sales can be attributed to a number of factors, which include enhanced battery capacity, cost savings due to lower electric vehicle prices, and environmental concerns.

The increase in hybrid and electric vehicle market share was driven mainly by hybrid electric vehicle sales. Battery vehicle sales declined, with the share falling from 7.4 percent of the U.S.  light-duty vehicle market in Q2 24 to 7.0 percent during Q3 24. The share of hybrid vehicle sales rose, with hybrid vehicles accounting for a record 10.8 percent of the U.S. light-duty vehicle market in Q3 24.

Battery electric vehicles continue to be prevalent in the luxury vehicle sector, accounting for 35.8 percent of U.S. light-duty luxury vehicle sales during Q3 24. However, luxury battery EVs as a percentage of total battery EV sales have been declining as sales outside the luxury market have risen, declining to the lowest percentage since Q2 17.

Tesla maintains the top spot in the U.S. battery EV market at 48.8 percent, its market share was lower than 50 percent for a second successive quarter during 2024. Ford holds the second-largest share of the battery electric vehicle market, despite the share declining to 6.9 percent in Q3 24 from 7.94 percent in the previous quarter. Sales moved to manufacturers such as Chevrolet, driven by sales of the recently introduced Equinox model and the sustained high demand for the Blazer model.

From a consumer perspective, the 2021 Inflation Reduction Act incentivized the purchase of electric vehicles by extending tax credits for the purchase of new vehicles and allowing tax credits for used electric vehicles. To meet the requirements for the clean vehicle tax credits in the Inflation Reduction Act, producers must abide by domestic content requirements for battery components, final assembly, and vital mineral inputs that range beyond manufacturing in North America.