Record 1.3 Million Electric Vehicles Sold

Takeaway: In 2024, the electric vehicle (EV) market continued to grow, with total EV sales in the U.S. reaching a record 1.3 million units, a 7.3% increase from 2023. This growth was driven by strong incentives from automakers, excellent lease deals, and federal and state incentive programs. The fourth quarter of 2024 saw a particularly strong performance, with EV sales jumping 15.2% year over year. While Tesla’s Model Y and Model 3 remained the best-selling EVs, both saw notable sales declines. Tesla’s overall market share decreased as other manufacturers like General Motors and Honda gained ground.

What’s next: In the year ahead, the U.S. market will see roughly 15 all-new EVs added – new models that did not exist in 2024 – and that will help drive even higher volumes in the market. Additionally, more hybrids and plug-in hybrids will grow electrified vehicle sales even further. Cox Automotive is expecting that one out of every four vehicles sold in 2025 will be electrified. Electric vehicles will account for approximately 10% of the market total in the year ahead, up from roughly 7.5% in 2024. Sales volume will grow past 1.5 million in 2025. Hybrids and plug-ins will account for approximately 15% of the market and sales of pure internal combustion engine vehicles — ICE products — will tumble to 75% of total volume, the lowest level on record.