Sales of electric vehicles set a new global record in September hitting 1.7 million units. This surpassed the previous record by 150,000 vehicles last December. Unsurprisingly, China is leading the charge, but contrary to what many in the U.S. would tell you, the American market is up 10% through the end of the third quarter.
Tesla’s Cybertruck helped keep the brand atop the EV sales heap in the U.S. through Q3.
With stringent rules enforcing sales of new energy vehicles, China’s name for plug-in electrics, it’s not a surprise that it helped to lead the way to the new record last month. The company accounted for 1.1 million of the 1.7 million EVs sold during September. It came after it set a record just one month earlier, beating that total by 90,000 vehicles.
However, EV sales are on the rise in just about every corner of the world right now, with Europe being the exception. Through the first nine months of the year, global EV sales are up 22% with 11.5 million vehicles sold, according to Rho Motion, a global research firm.
“This record-breaking month of EV sales brings new hope to the industry,” said Charles Lester, Rho Motion’s data manager. While the electrification of transport seems inevitable, the recent slowdown of sales in many parts of the world has sewn seeds of doubt which can now start to be swept aside. However, the regional disparities are astonishing, with China alone accounting for well over half the global total. Meanwhile, Europe’s numbers are shrinking, and the U.S. and Canada are steadily growing.”
U.S. sales rising
Tesla’s Model Y is still the bestselling EV in the U.S. despite a wave of new competitors.
Through the first quarter of 2024, U.S. EV sales were up about 8%, but for that number to rise to 10% that means automakers have been moving even more battery-electrics in the interim. New data from Cox Automotive shows that’s exactly what’s happening.
According to Kelley Blue Book, U.S. electric vehicle grew by 11% year over year during the third quarter, hitting record highs for both volume and market share in the process. KBB.com estimates 346,309 EVs were sold in Q3 2024, a 5% increase from Q2. The EV share of sales in Q3 hit 8.9%, the highest level recorded and an increase from 7.8% in Q3 2023.
“The growth is being fueled in part by Incentives and discounts; but as more affordable EVs enter the market and infrastructure improves, we can expect even greater adoption in the coming years,” said Stephanie Valdez Streaty, director of Industry Insights at Cox Automotive.
More EV stories
- Ford Revises EV Plans, Dumps 3-Row SUV, Delays Next-Gen Pickup
- First Drive: 2024 Chevrolet Equinox EV — An Affordable, Long Range Option
- These are the Best EVs You Can Buy Today — Says Consumer Reports
What’s driving the increase
Potential EV buyers found the perfect combination of factors to nudge them into actual EV buyers: higher incentives helping to lower prices. In fact, incentives comprised 12% of the average transaction price during the third quarter. This is a dramatic increase from what buyers find for gas- and diesel-powered vehicles at 7%.
The Chevrolet Equinox EV provides a more affordable option for EV buyers. The brand sold almost 10,000 in Q3.
A big portion of the incentives came from the “leasing loophole,” which allows all EV buyers to qualify for generous government-supported incentives. Electric vehicle prices were higher year over year in Q3 but by less than 1%, KBB analysts noted. The average price paid for a battery-electric in Q3 was just over $57,000, which is about 19% compared to the industry-wide ATP of just over $48,000.
Working to become the market leader
Despite concentrated efforts, Tesla retained its leadership in the U.S. market, helped in large measure by its newest entry: the Cybertruck. The controversially styled pickup comes with a six-figure price tag — averaging $116,000.
KBB estimated Tesla sold 16,000 Cybertrucks in the third quarter, which is more than any other vehicle on the market save two: the Model Y and Model 3. So despite Hyundai’s efforts to put a move on Tesla with the new EV9 and other all-electric offerings, it actually fell a spot to third place.
The expected onslaught of new EVs from General Motors finally crashed on the American market. Its EV sales skyrocketed 60% during the third quarter. The company sold more than 32,000 electric vehicles, moving into second place in the U.S. The company’s Chevrolet Blazer EV has been out for some time now, but it’s finally been joined by the Cadillac Lyriq, Chevrolet Silverado EV and Chevrolet Equinox EV, among others.
GM sold almost 10,000 Chevrolet Equinox EVs in Q3 2024 and produced over 40,000 in the opening eight months of the year, Rho Motion noted.
Ford was fourth in sales with 23,509, and Honda and Acura contributed more than 15,000 EV sales in the quarter, thanks to two new models. A year ago, American Honda EV sales were zero. It should also be noted that not only did Tesla make a splash with the Cybertruck in the EV market, but it was also the bestselling vehicle over $100,000 for most of the year.
I wonder if the Cybertruck will be the new presidential limousine?