The share of electric and hybrid vehicle sales in the U.S. reached a new high in the third quarter of 2024, according to estimates from Wards Intelligence. Combined sales of hybrid vehicles, plug-in hybrid electric vehicles (PHEVs), and battery electric vehicles (BEVs) rose from 19.1% of total light-duty vehicle (LDV) sales in the second quarter of 2024 to 21.2% in the third quarter.
The increase was driven mainly by BEV sales, which grew from 7.4% of the market in the second quarter to 8.9% in the third. Hybrid vehicle sales also saw a boost, with hybrids making up 10.6% of the U.S. LDV market in the third quarter, setting a new record.
BEVs were especially popular in the luxury vehicle segment, accounting for 35.8% of luxury vehicle sales in the U.S. in the third quarter. However, luxury BEVs now make up a smaller portion of total BEV sales compared to previous years, as sales in the non-luxury segment have increased. Despite this, luxury vehicles still represented 70.7% of BEVs sold in the U.S. during this period, and 10.3% of hybrid vehicles sold were luxury models. The average transaction price for a new BEV in the third quarter was $56,351, around 16% higher than the overall industry average price, before considering any consumer or government incentives.
Tesla remains the dominant player in the U.S. BEV market, holding a 48.8% share, although this is less than 50% for the second consecutive quarter in 2024. Tesla’s Model Y and Model 3 continue to lead sales, and the recently released Cybertruck helped increase the company’s sales, even outselling competitors’ large trucks, such as the Rivian R1S, Ford F150 Lightning, and others. Ford maintained the second-largest share of the BEV market at 6.9%, down from 7.9% in the second quarter. Chevrolet, benefiting from strong sales of its new Equinox and Blazer models, overtook Hyundai to become the third-largest BEV manufacturer in the U.S., capturing 5.8% of the market in the third quarter.
Most BEVs sold in the U.S. are produced domestically. In the third quarter of 2024, 78.9% of BEVs sold in the U.S. were made in North America, while 7.3% came from South Korea and 5.3% from Germany. To qualify for the clean vehicle tax credits under the Inflation Reduction Act, manufacturers must meet certain domestic content requirements. These rules are more stringent for final assembly, battery components, and critical mineral inputs, meaning not all vehicles manufactured in North America are eligible for the credit. However, EV leases have less strict requirements, allowing many models that don’t qualify for tax credits through purchases to still qualify when leased.
