Sales of new electric vehicles rose significantly last month as buyers raced to beat anticipated increase in prices due to Trump administration tariffs and the looming possibility of the end of federal tax credits. Is it still a good time to buy? Well, you’re going to pay more.
New EV sales jumped significantly last month and through the first quarter were up 11.4%.
Buyers were hitting auto dealerships hard last month, and EV sales enjoyed the attention as much as any segment. According to Cox Automotive, EV sales jumped 18.5% on a month-over-month basis and 8.2% year over year.
Overall, electric vehicle buyers were busy during the first three months of 2025 as sales increased 11.4% to nearly 300,000 vehicles. In addition to the potential impact of Trump administration policies on EVs, there were simply more options for buyers to choose from.
Acura, Audi, Chevrolet, Honda, Porsche and other manufacturers rolled out new offerings during the first quarter of the year. And while Tesla saw sales decline last month, the company is still the market leader by a wide margin, and its new version of its best-selling Model Y is now in full production.
Big sellers
Kia is just one of the automakers cutting into Tesla’s U.S. market share with the EV9.
Tesla’s market share fell by 5 percentage points to 42%, although the Model Y and Model 3 remained the top-selling vehicles. It was a strong month for Chevrolet, Hyundai, Genesis and Cadillac, with each brand experiencing a month-over-month volume increase of 50% or more.
The top five selling new EV models, ranked by sales volume, were the Tesla Model Y, Tesla Model 3, Ford Mustang Mach-E, Chevrolet Equinox and Hyundai Ioniq 5. With over 70 models available, competition in the EV market is fierce, Cox analysts noted.
Sales have been so strong during the first quarter that inventory levels are dropping. Cox notes they’re down 26% compared to year-ago numbers. However, before anyone races out to buy out of fear of not being able to get the EV they want the days supply — the number of new vehicles sitting on dealers’ lots — is still 93 days. That’s still well above the ideal average of 60 days.
This number also varies significantly by make. For example, GMC had the highest days’ supply at 170 days, whereas Kia had the lowest at 23 days. BMW saw the largest month-over-month decline in days’ supply, dropping by 49 days to end the month at 80 days. In contrast, Volkswagen saw the highest increase, rising by 47 days to 82 days, which remains below the monthly average.
More EV News
- Tesla Share of California EV Market Drops Below 50%
- Kia EV3 Named World Car of the Yer — And Other Winners
- Subaru Plugs In With Two New EVs at New York Auto Show
Selling more, paying more
As buyers hustled to dealerships, looking to beat any kind of potential tariff tax, that drove up demand. As a result, the average transaction price of new EVs rose in March by 3.8% compared to February and 4.4% from the same time last year.
There’s a flood of new EVs coming to market – including lower-priced models, such as the Chevrolet Equinox EV.
The average amount paid increased to $59,205, Cox Automotive officials said. This occurred as the average price for internal combustion engine, or ICE, vehicles fell, widening the gap between the two to $12,229.
Automakers still want to move EVs off those lots so they’re offering larger incentives on EVs than ICE vehicles. They’re 13.3% higher. And this is where the good deals can be had — some vehicles are getting substantially more in enticements from their makers.
The Nissan Leaf, Kia EV6, Mercedes EQB and Nissan Ariya had incentive levels exceeding 30% of their ATP. However, experts warn this tide not only could turn, they expect it will and soon.
“The year certainly started strong, but the road ahead will be anything but smooth,” said Stephanie Valdez Streaty, Cox Automotive analyst.
0 Comments