EV and Hybrid Sales Surge to Record 20% of U.S. New Car Sales

Electrified vehicles—encompassing all-electric and hybrid models—surpassed a historic 20% share of all new car and truck sales in the United States in 2024. This milestone highlights America’s growing preference for eco-friendly rides and signals that the age of electrification is here to stay.

Record-Breaking Electrification Stats

• 3.2 million “electrified” vehicles sold in 2024
  • 1.9 million hybrid vehicles (including plug-ins)
  • 1.3 million all-electric models
• 79.8% of new vehicle sales were still powered by internal combustion engines—dipping below 80% for the first time in modern automotive history.
  (Source: Motor Intelligence)

Tesla Leads EV Market—But Market Share Slips

According to Cox Automotive, Tesla remains the dominant force in American EV sales, holding about 49% of the market—down from 55% in 2023. The Tesla Model Y and Model 3 continue to be the nation’s bestselling EVs. However, rivals are fast catching up:

1. Hyundai Motor (including Kia): 9.3%
2. General Motors: 8.7%
3. Ford Motor: 7.5%
4. BMW: 4.1%

(Source: Cox Automotive)

Meanwhile, the EV segment itself is becoming more diverse. Kelley Blue Book tracked 68 mainstream EV models in 2024: 24 reported year-over-year growth, 17 were brand new, and 27 declined in volume.

Projections & Possibilities for 2025

While 2024 marked a milestone for electrified vehicles, experts see even stronger momentum in 2025:

• Cox Automotive projects that purely electric vehicles (EVs) will account for 10% of total new vehicle sales in 2025. If hybrids and plug-in hybrids are also included, they estimate that one in four new vehicles sold—25%—could be electrified overall.
  (Source: Cox Automotive)
• S&P Global Mobility (formerly IHS Markit) anticipates that battery-electric vehicles (BEVs) will comprise 15–20% of new U.S. car sales by 2025, supported by an expanding model lineup, wider charging infrastructure, and increasing consumer confidence.
  (Source: S&P Global Mobility (IHS Markit))
• BloombergNEF forecasts worldwide EV sales to surge, with the U.S. playing a significant role—potentially topping 1.8 million pure EV units sold in 2025 if federal policies remain supportive and charging networks continue to grow.
  (Source: BloombergNEF Electric Vehicle Outlook)
• Additionally, the International Energy Agency’s (IEA) Global EV Outlook 2023 reports that global electric car sales topped 10 million units in 2022 and could exceed 14 million in 2023. While much of that growth is driven by China and Europe, the U.S. is quickly closing the gap—especially given the significant EV adoption seen through 2024 and the projections for 2025.

Policy and Incentive Uncertainty

Despite this optimism, the fate of federal EV tax credits—currently up to $7,500 per qualifying vehicle—remains unclear with the incoming Trump administration. Any shift in incentives or national policy could either accelerate or restrain the growth of both pure EVs and hybrids.

Key Takeaways

1. Record Electrification: EVs and hybrids combined reached 20% of U.S. new vehicle sales in 2024—an unprecedented figure.
2. Tesla on Top: Tesla still holds nearly half of the EV market, though its share slid below 50%.
3. Further Growth Expected: Multiple forecasters see EV (pure electric) sales hitting between 10% and 20% in 2025, with total electrified (EV + hybrid) approaching or surpassing one quarter of all new car sales.
4. Policy Watch: Federal tax credits and other incentives remain a crucial factor in shaping demand.

With automakers rolling out innovative hybrids and all-new EVs—and with charging infrastructure becoming more accessible—2025 looks set to push electrification even further into the mainstream. Buckle up for another electrifying year!

Thanks for reading!

References

• Motor Intelligence
• Cox Automotive
• Kelley Blue Book
• S&P Global Mobility (IHS Markit)
• BloombergNEF Electric Vehicle Outlook
• CNBC
• International Energy Agency - Global EV Outlook 2023