Acceptance of electric vehicles continues to rise not just in the U.S. but around the world. One need only examine the 2024 sales numbers to see that buyers are more comfortable with potential EV-related shortcomings to enjoy the benefits of battery-powered vehicles.
EV sales were up not just in the U.S., but also around the world.
And while new records for EV sales were set last year both globally and in America, the reasons for the results are different. According to research firm Rho Motion, global EV sales were up 25% to 17.1 million for 2024 with China leading the way.
China’s EV sales were up 40% compared to 2023 numbers. Conversely, European Union sales were down 3%, but the U.S. and Canada rose 9% and the rest of the world jumped 27%, the research firm noted.
“After the record-breaking year in 2023 for EV sales we entered 2024 with some optimism about the market despite headwinds,” said Rho Motion Data Manager Charles Lester.
Big China influence
Chinese buyers also purchased a total of 31.4 million vehicles overall, an all-time record, according to data released Monday by the China Association of Automobile Manufacturers, or CAMI.
Tesla’s Model Y was the best-selling EV in the U.S. in 2024. It was followed by the Model 3.
Multiple factors drove the massive rise in sales, including range-extended vehicles, the Rho Motion noted. Range-extended EVs use a small gas or diesel engine to charge the batteries for the electric powertrain after they are depleted.
Unsurprisingly, the Chinese government played a major role. A government program aimed at getting older, dirtier vehicles off the road helped kick-start demand. EV sales soared 40% during 2024 compared to prior-year levels. “New Energy Vehicles” also played a role in boosting automotive exports to record levels, accounting for more than one in four of the 5 million Chinese-made products.
However, Chinese EVs didn’t just make a big impact in China. Exports of electric vehicles helped push sales upward in other markets. The country exported nearly 5 million EVs last year — also a record number.
Manufacturers like BYD and Geely have put an emphasis on electrified exports and been met with strong demand in places like Europe and Latin America where EVs like the BYD Shark can undercut traditional competitors by thousands of dollars.
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U.S. sales
The Ford Mustang Mach-E was the best-selling non-Tesla EV in the U.S. in 2024.
While China posted the biggest number, EV sales in the U.S. alone jumped 15.2% in the fourth quarter, and 7.3% for the full year, according to Kelley Blue Book. Sales of EVs totaled 1.3 million in 2024.
As was the case with China, the government played a role in charging up EV sales in the final stanza of 2024 — but in reverse. The threatened end of $7,500 federal tax credits for eligible electric vehicles pushed many tire kickers to become full-blown buyers. Incoming President Donald Trump has said on multiple occasions, he plans to get rid of the credits.
He takes office next week so the rush to beat that looming deadline (of sorts) was on, plus many automakers offer improved incentives around the holidays to help dealers clear their lots.
Change is in the wind
Honda sold more than 30,000 Prologue EVs in its first year.
U.S. sales rose despite the global EV sales leader, Tesla, posting its first down year in its existence. Kelley Blue Book said that of the 68 mainstream EV models it tracks, 24 posted sales increases this year and 17 new models hit the roads.
Several automakers saw gains this year, including General Motors and Honda Motor Co., which together sold nearly 80,000 more EVs in 2024 than in 2023, Kelley Blue Book noted. Hyundai Motor Group and Ford Motor Co. also enjoyed increased EV sales last year.
The Tesla Model Y and Model 3 continue to be best-selling electric vehicles in the U.S. While their sizable leads did shrink as sales declined in 2024, the Model Y and Model 3 accounted for more than 40% of all EVs sold last year in the U.S.
The Ford Mustang Mach-E was the best-selling EV not made by Tesla, followed by the Hyundai Ioniq 5. The Tesla Cybertruck came in at No. 5, just ahead of the Ford F-150 Lightning. The Honda Prologue, which had zero sales in 2023, was No. 7 on the best-selling list for 2024.
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