In the second quarter of 2024 (2Q24), the share of electric and hybrid vehicles in the U.S. increased after a slight dip in the first quarter of the year. According to estimates from Wards Intelligence, these vehicles, including hybrids, plug-in hybrids, and battery electric vehicles (BEVs), made up 18.7% of all new light-duty vehicle (LDV) sales in 2Q24. This is up from 17.8% in 1Q24.
The rise in market share was largely due to a significant boost in hybrid electric vehicle (HEV) sales, which saw a 30.7% year-over-year increase. Hybrids rose from 8.6% of the total light-duty market in 1Q24 to 9.6% in 2Q24. Sales of plug-in hybrid electric vehicles increased slightly from 1.7% to 2.0% of the market year over year. Battery electric vehicles also grew, holding 7.1% of the market in 2Q24, which was consistent with the same quarter last year.
Luxury electric vehicles performed well, representing 32.8% of all luxury vehicle sales in 2Q24. Overall, luxury vehicles made up 16.6% of the total light-duty market during this period. Within the luxury segment, electric vehicles accounted for 73.8% of all BEV sales, 8.3% of hybrid sales, and 29.2% of plug-in hybrid sales.
The average transaction price of BEVs in the U.S. decreased from $57,405 in January 2024 to $56,371 in June 2024. This price was 21.1% higher than the average price of light-duty vehicles in January and 15.9% higher in June.
Tesla remains the leading manufacturer in the electric vehicle sector, but its market share has dropped below 50% for the first time since the end of 2017. In 2Q24, Tesla’s share of the electric vehicle market was 48.9%. Meanwhile, sales have increasingly shifted to traditional manufacturers like Ford, Chevrolet, Hyundai, and Kia. Ford, with an 8.0% share of electric vehicle sales, was the second-largest player, driven by its Mustang Mach-E and F-150 Lightning models. Chevrolet’s focus shifted to its new electric models, such as the Blazer, Silverado, and Equinox, after halting production of the Bolt.
Electric vehicle production is both domestic and global. Wards Intelligence estimates that 74.4% of the electric vehicles sold in the U.S. were made in North America in 2Q24, down from 78.7% in the same quarter of the previous year. The share of electric vehicles made in South Korea increased from 8.0% to 12.2%, while those made in Japan rose from 2.4% to 7.2%.
To qualify for clean vehicle tax credits under the Inflation Reduction Act, manufacturers must meet specific domestic content requirements for final assembly, battery components, and critical mineral inputs. This means that not all vehicles labeled as North American-made meet the criteria for these credits.
