Despite the constant barrage of bad news for EVs, some may be surprised to hear that EV sales in the US are actually increasing and approaching a major milestone.
According to Cox Automotive’s Kelley Blue Book (KBB), EV sales increased 11% year over year to more than 346,000 new vehicle sales. KBB also announced that EV sales increased by 5% compared to the second quarter.
More importantly, the US EV market share rose to 8.9% from 7.8% last year. Although EV market share growth has slowed slightly, it is approaching the 10% threshold that many see as a major milestone for EV adoption in the United States.
“U.S. EV sales continue to increase, although year-over-year growth has slowed,” Stephanie Valdez Streeti, director of insights at Cox Automotive, said in the report.
However, the reason behind the increase in sales of new EVs is not all good news. Manufacturers and dealers are absorbing higher incentives and lower prices to move cars off the lot. KBB reported that incentives averaged more than 12% in the third quarter, well above the industry average of 7%.
The adoption of EV leasing is increasing thanks to the federal EV tax credit. (Cox Automotive) (Cox Automotive)
Meanwhile, EV leasing is booming thanks to federal support. As previously reported, customers who lease an EV are entitled to the full amount of the federal EV tax credit, regardless of where the EV was manufactured, the EV’s price, or the consumer’s income level. These are the limiting factors for tax deductions. Purchaser.
According to KBB research, the penetration rate for EV leasing (as opposed to outright purchase or financing) rose to 42.7% at the end of the quarter, marking a steady rise since December 2022, when the federal government released details on EV leasing. There is. At that time, EV lease fees were around 10%. For comparison, the industry-wide lease rate was 22.2% at the end of the third quarter.
By brand, Tesla’s EV market share remained below 50% from the end of the second quarter, but it remains the top-selling EV manufacturer.
Tesla Cybertruck parked at a local Tesla dealership in Paramus, New Jersey, July 23, 2024 (Reuters/Eduardo Muñoz) (Reuters/Reuters)
The polarizing Cybertruck sold 16,000 units in the third quarter, making it the third-best-selling EV in the quarter, behind Tesla’s Model Y and Model 3.
Tesla is followed by GM, which saw sales increase 60% in the quarter, and Hyundai, with Ford in fourth place.
For the rest of 2024, Cox and KBB are calling it “another year” for EVs in the US. “Growth is being driven in part by incentives and discounts, but as more affordable EVs enter the market and infrastructure improves, we expect further uptake in the coming years,” Valdez Streeti said. We expect it to move forward.”
And what is that 10% milestone? The company’s forecasters like Cox and Valdez Streeti believe that 10% market share is “well within reach” given the trends mentioned above. I am.
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Pras Subramanian is a reporter for Yahoo Finance. you can follow him Twitter And also on Instagram.
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