According to Motor Intelligence, US electric vehicle sales dropped by 30.7% in the first three quarters of this year, accounting for 6% of total vehicle sales compared to 8.5% last year. Conversely, the European Automobile Manufacturers Association reports that EVs reached a 23.2% market share in Europe, up from 17.7% in the same period.
Market divergence is attributed to policy shifts and fuel costs. In the US, the expiration of a $7,500 federal tax credit and the rollback of fuel efficiency standards have dampened demand. Meanwhile, European consumers are shifting to EVs to mitigate rising fuel prices, supported by stricter emission regulations and an influx of new models.
US consumer interest has pivoted toward hybrid vehicles and used EVs. Hybrid sales in the US grew by 23% in the first three quarters, reaching a 15.6% market share. Used EV sales also rose by 19%. Consequently, several US automakers have canceled new EV projects or discontinued existing models, while Nissan has accelerated the launch of its hybrid Rogue.
Corporate performance varies significantly. Tesla saw a 14% decline in US sales, while Rivian grew by 29% driven by the R2 SUV. Ford and General Motors reported sales drops of 68% and 43%, respectively. Honda plans to cease EV production by year-end to focus on hybrids, though Hyundai reports a recent recovery in EV demand and intends to continue its electric vehicle operations.
