The electric and hybrid segments had an exceptional year in 2024 and achieved a record 20% share of vehicle sales in the U.S. market.
According to Motor Intelligence, an auto data firm, a staggering 3.2 million “electrified” vehicles were sold last year. 1.9 million were hybrid, including plug-in models and vehicles, and 1.3 million were fully electric.
Notably, there was a decline in internal combustion engine (ICE) vehicles, dropping to 79.8% of the market, the first-ever recorded dip below 80%.
Although Tesla lost some market share, it remains the top-selling EV in the U.S. In 2024, the automaker’s EV market share was 49%, down from 55% in 2023. Its top-selling models were the Model Y and Model 3.
Despite Tesla’s dominance in the market, competitor brands are finally starting to gain some traction. Hyundai, including sister Kia, snatched up 9.3% of the EV market share; General Motors landed 8.7%; Ford 7.5%; and BMW 4.1%.
Of the 68 EV models tracked by Kelley Blue Book, 24 had year-over-year growth; 17 were brand-new to the market and 27 had decreased volume.
However, there are a few roadblocks and uncertainties along the way. Historically, the GOP has displayed skepticism regarding electric vehicles and withheld support from electrification initiatives. This trend is likely to continue as the incoming Trump administration considers nixxing the $7,500 federal tax credit for EV purchases.
However, despite the mounting challenges, there’s no denying that EVs are here to stay. Cox Automotive’s Chief Economist, Jonathan Smoke, well-renowned for his insightful industry predictions, forsees that EVs will continue to grow in 2025 and achieve another record-breaking year.
