Market Strength Supports a Rapid Transition to Clean Cars
DID YOU KNOW: Consumer surveys show that 48% of US car buyers are considering purchasing a battery- or plug-in hybrid electric vehicle in the next two years.
Despite recent news about Tesla’s sales dropping during the first quarter of 2024, data shows that the EV market continues to grow overall, with some automakers showing blockbuster growth in EV sales while sales of their traditional gas powered vehicle offerings decline.
The media has been quick to report an “EV slowdown” in the U.S. market — but in reality, EV sales volumes have hit record highs year after year. EV sales growth rates naturally fluctuate in tandem with the industry as a whole related to interest rates, supply chain or production issues, and consumers anticipating release of new or updated models.
In the first quarter of 2024 compared to the first quarter of 2023 in the U.S.:
Nine manufacturers recorded more than 50% growth in EV sales – BMW, Cadillac, Ford, Hyundai, Kia, Lexus, Mercedes, Rivian and Vinfast.
Kia’s overall vehicle sales were down 2% year-over-year — but their EV sales were up 88%.
Stellantis’ (Chrysler, Jeep, Ram, Dodge, etc.) overall vehicles sales were down 10% year-over-year — but
EV sales reached record highs in the U.S. market.
Legacy automakers are showing significant growth of popular EV models in the U.S. comparing first quarter of 2024 to first quarter of 2023:
Ford Mustang Mach-E up 77%
Ford F-150 Lightning up 80%
GM Cadillac LYRIQ up 500%
In 2023, EVs were the fastest-growing segment of the U.S. auto market.
EVs experienced more sales growth in 2023 than any other car sales category, according to Kelley Blue Book.
In 2023, EV growth rates outpaced the growth in overall vehicle sales for several leading auto brands, including GM and Ford.
Tesla in Perspective
It has been reported that Tesla sales decreased in the first quarter of 2024 and that the company plans to lay off a portion of its workforce.
Tesla has made up more than 50% of all EV sales in the U.S., so if Tesla doesn’t do well, even if temporarily, it has an outsize impact on all EV sales during that period.
However, EV sales in the U.S. of many other brands soared in the first quarter of 2024 compared to the first quarter of 2023, demonstrating growing consumer interest in EVs.
