Sales of electrified vehicles have reached unprecedented levels in the United States, capturing 20% of new car and truck sales for the first time ever in 2024, according to Motor Intelligence. Over 3.2 million electrified vehicles, including all-electric and plug-in hybrid models, were sold last year. This milestone marks a significant shift in consumer preferences away from traditional gas and diesel-powered vehicles, whose share of new vehicle sales fell below 80% for the first time in modern automotive history.
Hyundai Motor, which includes Kia, secured a 9.3% share of the EV market, closely followed by General Motors at 8.7%, and Ford Motor at 7.5%. Meanwhile, Tesla's dominance in the pure EV segment slightly diminished as its market share fell to approximately 49%, down from 55% in the previous year. Despite this decline, Tesla's Model Y and Model 3 remained the best-selling EVs in 2024. Other notable players in the EV market include BMW, which held a 4.1% market share.
The future of electric vehicle sales remains uncertain due to potential policy changes by the incoming Trump administration. Yet, industry experts remain optimistic about the continued growth of electrified vehicles. Cox Automotive forecasts that one out of every four vehicles sold this year will be electrified and anticipates another record-setting year for EV volume in 2025, projecting approximately 10% of new vehicle sales to be electric.
Federal subsidies continue to play a pivotal role in driving EV sales, with current incentives offering up to $7,500 per vehicle. The market has also seen an influx of new models, as Cox's Kelley Blue Book tracks 68 mainstream EV models. Out of these, 24 models posted year-over-year sales increases, while 17 were newly introduced to the market. However, 27 models experienced a decrease in volume.