A Look Back at the US EV Market in 2024: What to Expect in 2025

Core Insights - The U.S. electric vehicle (EV) market experienced moderate growth in 2024, with a significant surge in sales during the fourth quarter, driven by favorable economic conditions and consumer urgency regarding federal tax credits [1][2][4] Sales Performance - EV sales in the U.S. rose by 12% in Q4 2024, totaling 356,000 vehicles, influenced by lower interest rates and enhanced automaker incentives [2] - Total battery-electric vehicle (BEV) sales reached 1.3 million in 2024, an 8% market share of nearly 16 million vehicles sold, up from 7.6% in 2023 [5] - Tesla maintained a 50% market share but faced a 6% decline in U.S. sales for the year, marking its first annual drop in deliveries [8] Key Players - General Motors (GM) saw its EV sales more than double in Q4 to approximately 44,000 units, with a full-year total of around 114,000, a 50% increase from 2023 [6] - Ford sold 97,865 all-electric vehicles in 2024, a 35% year-over-year increase, with the Mustang Mach-E leading the portfolio [7] - Hyundai and Kia achieved record sales in 2024, with standout models like the Kia EV9 and Hyundai Ioniq 5 [9] Market Dynamics - The uncertainty surrounding federal EV tax credits created urgency among consumers, boosting year-end sales as many sought to take advantage of existing incentives [4] - The competitive landscape is evolving, with legacy automakers like GM and Ford outpacing the broader market growth, while luxury brands like Audi and BMW also made significant strides [10] Future Outlook - In 2025, pure EVs are projected to capture 10% of total sales, exceeding 1.5 million units for the first time, despite potential policy shifts [14] - The pricing battle is expected to intensify, with manufacturers rolling out attractive lease deals and promotions, alongside advancements in charging infrastructure and battery technology [16]