UPDATE: In a striking contrast to global trends, North American electric vehicle (EV) sales have dropped by 1% this year, according to new data from Benchmark Mineral Intelligence. While global EV sales surged 21%, North America lagged behind, raising concerns among industry leaders.
Between January and November 2024, 1.7 million EVs were sold in North America, significantly trailing behind 11.6 million sold in China and 3.8 million in Europe. This decline comes amidst a series of policy changes, including the recent end of the $7,500 EV tax credit, which has been pivotal in driving sales.
The slump in the U.S. market has alarmed automaker executives. In September, Ford CEO Jim Farley predicted a potential halving of the EV market share in the U.S. to around 5% in the near term. This forecast highlights the urgency of the situation, as American consumers appear to be gravitating away from battery-powered vehicles.
The data from Benchmark Mineral Intelligence points to a combination of factors affecting sales, including tariffs and supply chain disruptions. The end of the EV tax credit in September has particularly contributed to what the firm describes as “subdued” sales. Moreover, changes in regulations during the Trump administration have further complicated the landscape for EV manufacturers.
In October, despite facing a significant drop-off in sales, Tesla managed to outperform many rivals. However, the company is racing against the clock to avoid a second consecutive year of declining sales. Other U.S. EV manufacturers, including General Motors (GM) and Rivian, have also announced layoffs due to decreased demand, indicating that the challenge is widespread across the industry.
In stark contrast, China’s EV market continues to thrive, with overall sales increasing by 19%. While BYD, China’s largest EV maker, is experiencing turbulence from rising competition, it achieved record EV exports in October, showcasing the global demand for electric vehicles.
As Charles Lester, data manager for Rho Motion, noted, “Overall, EV demand remains resilient, supported by expanding model ranges and sustained policy incentives worldwide.” This sentiment underscores the resilience of the EV market internationally, despite the challenges faced in North America.
For readers and industry watchers, the immediate future remains uncertain. Stakeholders are keenly observing how U.S. automakers will respond to these challenges and whether any new incentives or strategies will emerge that could reverse the current downward trend in EV sales.
Stay tuned for further updates as this story develops. The urgency surrounding the U.S. EV market has never been more pronounced, and its implications could shape the future of electric mobility in North America.
