U.S. EV Sales Surge to Nearly 9% in Q3 2024
Key Highlights
- Electric vehicles (EVs) made up nearly 9% of U.S. light-duty vehicle sales in Q3 2024.
- BEVs drove the surge in hybrid and EV sales, pushing their combined market share to 21.2%.
- Luxury EVs still dominate but are losing market share as affordability improves.
EV Sales Significant Growth in U.S.
The U.S. EV sales achieved remarkable growth in the third quarter of 2024, with battery electric vehicles (BEVs) rising to 8.9% of all light-duty vehicle sales, up from 7.4% in Q2, according to the U.S. Energy Information Administration (EIA). Combined sales of hybrid, plug-in hybrid, and BEVs reached 21.2% of the market.
This growth is fueled by federal incentives, such as the Inflation Reduction Act’s $7,500 EV tax credit, to make EVs more accessible. However, affordability remains a hurdle, with the average price of a BEV reaching $56,351, i.e. 16% above the industry average, according to Cox Automotive.
Luxury EVs Lead Despite Declining Share
Luxury electric vehicles accounted for 71% of EV sales in Q3 2024. While they remain a stronghold of the market, their share within the EV sector is at its lowest since 2017, reflecting increased adoption in non-luxury segments. Luxury EVs made up over one-third of all light-duty luxury vehicle sales during this period.
As EVs continue to gain ground, the future of tax credits remains uncertain, with policymakers debating their continuation under new administration priorities.
