- EV and hybrid sales hit 18.7% of U.S. light-duty vehicle market in Q2 2024.
- Hybrid vehicle sales jumped 30.7% year-over-year, reaching 9.6% of market.
- Tesla’s market share dropped below 50%, with Ford and Chevrolet gaining ground.
- 74.4% of U.S. EVs were made in North America, down from last year’s 78.7%.
- New energy generation projects are underway to meet growing grid demand.
In the second quarter of 2024, the United States witnessed an increase in the share of electric and hybrid vehicle sales, highlighting the growing adoption of cleaner automotive technologies. According to estimates from Wards Intelligence, the combined sales of hybrid vehicles, plug-in hybrid electric vehicles (PHEVs), and battery electric vehicles (BEVs) grew to 18.7% of the total new light-duty vehicle (LDV) sales, up from 17.8% in the previous quarter. This represents a notable shift towards electric mobility, primarily driven by a surge in hybrid electric vehicle (HEV) sales.
Hybrid vehicle sales experienced the most significant growth, with a year-over-year increase of 30.7%, comprising 9.6% of the overall LDV market. PHEVs also saw a slight uptick, from 1.7% to 2.0% of the market, while BEVs maintained a stable presence, capturing 7.1% of sales. Interestingly, luxury electric vehicles continued to dominate, making up 32.8% of total luxury sales, reflecting a growing demand for high-end electric models. Tesla, despite being the market leader, saw its share dip below 50% for the first time since 2017 as legacy automakers such as Ford and Chevrolet gained ground.
The expansion of electric and hybrid vehicle sales aligns with broader industry trends toward energy generation and environmental sustainability. The data from the July 2024 generator inventory underscores the ongoing transformation in the U.S. energy landscape, with several renewable energy projects coming online to meet the growing power demand from electric vehicles and other sectors. For instance, the report lists various operational generators across the country, such as Sand Point Generating LLC in Alaska, which supports local electricity needs.
As electric vehicles become more mainstream, the pressure on the grid increases, particularly in regions with high penetration of electric mobility. According to the July 2024 generator inventory, energy generation projects are being planned or are currently operating in different sectors, including electric utilities and independent power producers. These projects range in capacity, with some generators contributing tens of megawatt-hours (MWh) of energy to the grid.
Manufacturers producing electric vehicles for the U.S. market are responding to this growing demand by expanding both domestic and global production. In 2Q24, 74.4% of electric vehicles sold in the United States were manufactured in North America, although this represents a slight decline from the previous year. South Korea and Japan saw significant increases in their share of electric vehicle production for the U.S., with South Korea's share rising from 8.0% in 2Q23 to 12.2% in 2Q24, and Japan's from 2.4% to 7.2%.
The Biden administration's Inflation Reduction Act continues to influence the electric vehicle market, particularly through clean vehicle tax credits. However, only vehicles that meet strict domestic content requirements—related to final assembly, battery components, and critical minerals—qualify for these incentives. This has pushed manufacturers to reassess their supply chains and sourcing strategies, as not all North American-produced vehicles are eligible.
The future of electric vehicle growth appears bright, supported by policy initiatives and the rising demand for clean energy solutions. However, challenges remain, especially in terms of infrastructure and ensuring that the power grid can handle the increasing load. As evidenced by the data from July 2024, significant efforts are underway to bolster the grid, with new energy generation projects coming online to meet these challenges.