August 2024
(Image by Paul Brennan from Pixabay)
story courtesy of CFC News
The U.S. electric vehicle (EV) market saw significant growth in the second quarter of 2024. Total EV sales reached an estimated 330,463 units, a 27% increase from the previous quarter, indicating a slight shift toward electric transportation.
Key Performers and Market Dynamics
Tesla maintained its market leadership, though its share dipped slightly to 49.7%. Tesla’s domestic Q2 sales reached 164,264 EVs, with the Model Y and Model 3 being top sellers.
Ford saw a 61% year-over-year growth in Q2, selling nearly 24,000 EVs.
General Motors (GM) reported a 42% year-over-year increase in EV sales, totaling 21,930 units. However, this did not help the Chevrolet division as it saw a 19% decline in year-over-year sales that was attributed to the discontinuation of the Bolt.
Hyundai and Kia set new sales records with models like the IONIQ 5 and the new Kia EV9. Hyundai Motor Group’s combined sales increased 11.2%.
Cadillac, BMW, Genesis, Audi and Mercedes saw EV sales account for 10% or more of their Q2 sales, signaling a shift to EVs for luxury brands.
Market Share and Trends
The U.S. EV market is seeing considerable changes. While Tesla still holds the largest market share, Ford and GM are catching up with new models and aggressive marketing. Growth for Hyundai and Kia reflects rising consumer interest in diverse EV options.
“Second-quarter sales figures indicate a maturing EV market with expanding consumer acceptance and more competitive offerings from traditional automakers,” CFC Director of Utility Research and Policy Brian Sloboda said. “Investment in EV infrastructure, such as charging stations and battery technologies, is crucial for sustaining growth.”
The J.D. Power 2024 U.S. Electric Vehicle Consideration (EVC) Study shows a slight decline in consumer interest in EVs, the first drop since 2021. Only 24% of new-vehicle buyers are “very likely” to consider an EV, down from 26% last year, while overall consideration dropped from 61% to 58%.
Younger buyers, like Gen Z and millennials (Gen Y), are less interested in EVs than before. The number of Gen Z cohort “very likely” to consider an EV decreased by 2%, and for millennials, it went down by 5%. Still, these groups are the most interested in EVs, with 24% of Gen Z and 32% of millennials considering them.
“The main reason people don’t want EVs is because of charging problems,” Sloboda said. “Among those not interested in EVs, 52% said the lack of charging stations is a big issue, which is up 3% from last year. Other problems include the high cost of EVs, limited driving range, long charging times and difficulty charging at home or work.”
People with long commutes are less likely to think about buying an EV. Those who drive 46 to 60 minutes each way to work showed a big drop in interest, with only 24% “very likely” to consider an EV, down 13% from last year.
Having a second car makes people more likely to think about getting an EV. About 68% of people with two cars are open to EVs, while only 47% of people with just one car are interested. Research suggests that people worry about how to manage with only one vehicle if it’s an EV.
“The second quarter of 2024 showed growth and changes in the U.S. EV market,” Sloboda said. “Sales figures reflect that more people are accepting EVs and that car companies are using strong strategies to entice them. Continued innovation and building more infrastructure will be key to continuing to grow the EV market.”