On the Dash:
- Electric vehicle sales are expected to plummet nearly 60% in October, dropping to just 5.2% of new-vehicle sales.
- The September surge in EV purchases was driven by buyers rushing to use the federal $7,500 tax credit before it expired.
- Overall U.S. new-vehicle sales are also projected to slow, with a seasonally adjusted annual rate of 15.7 million units in October.
Consumer interest in electric vehicles is grinding to a halt. J.D. Power forecasts that electric vehicle sales will drop by a staggering 60% in October. The company predicts that EVs will account for only 5.2% of new-vehicle sales, a significant drop from September’s 12.9%.
During September, car buyers rushed to showrooms, pulling forward purchases to take advantage of the federal tax incentive before it expired on Sept. 30. 136,211 EVs were sold, and the electric segment reached a record 12.9% market share.
J.D. Power predicts that retailers will only sell 54,673 EVs in October, representing a 43.1% year-over-year decline and a market share reduction to 5.2%, down from 8.5%. It would also mark a 59.9% decline from September’s results.
In addition, new-vehicle sales overall are expected to slow. Cox Automotive projected a seasonally adjusted annual rate (SAAR) of 15.7 million units, a marked decline from September’s 16.4 million.
The sharp slowdown in EV sales underscores how dependent the market has been on federal incentives, which were a key factor in the September rush and in piquing consumer interest in electric variants. However, analysts expect the EV market to stabilize over time.
