DETROIT — Sales of all-electric and hybrid vehicles in the U.S. reached 20% of new car and truck sales for the first time last year, signaling a significant milestone for “green” vehicles. However, the growth came at a slower rate than many had originally expected.
According to auto data firm Motor Intelligence, over 3.2 million electrified vehicles were sold in 2024, including 1.9 million hybrid models (both traditional and plug-in) and 1.3 million all-electric vehicles.
Traditional vehicles powered by gas or diesel internal combustion engines still accounted for the majority of sales, but their share declined to 79.8%, falling below 80% for the first time in modern automotive history, according to the data.
In the pure EV segment, Tesla remained the leader, but Cox Automotive estimated that its annual sales dropped, with its market share falling to about 49%, down from 55% in 2023. The Tesla Model Y and Model 3 were projected to be the best-selling EVs of 2024.
Following Tesla in EV sales were Hyundai Motor (including Kia) with 9.3% of the market, General Motors at 8.7%, and Ford Motor at 7.5%, according to Motor Intelligence. BMW completed the top five with a 4.1% share.
The U.S. EV market is highly competitive. Of the 68 mainstream EV models tracked by Cox’s Kelley Blue Book, 24 saw year-over-year sales growth, 17 were newly introduced to the market, and 27 experienced a decline in sales volume.
There is uncertainty surrounding the performance of all-electric and plug-in hybrid electric vehicle sales this year, as potential actions by the incoming Trump administration could influence the market.
Currently, federal incentives of up to $7,500 for the purchase of EVs and plug-in hybrids are available, but President-elect Donald Trump could eliminate these credits, along with other forms of support for electric vehicles.
Cox Automotive anticipates that 2025 will set another record for EV sales, projecting that around 10% of new vehicles sold will be all-electric. When including hybrids, the company expects one out of every four vehicles sold to be electrified this year.
