EIA Reports Increase in U.S. EV Sales After Slowdown
The U.S. electric vehicle (EV) market is showing signs of recovery after a slight downturn, according to the latest data released by the Energy Information Administration (EIA) on Monday. Quarter-over-quarter, the share of electric and hybrid vehicle sales in the United States increased by approximately 1% in the second quarter of 2024, following a decline in the previous quarter. This rebound was primarily driven by a surge in hybrid electric vehicle (HEV) sales.
Citing estimates from Wards Intelligence, the EIA reported that sales of hybrid, plug-in hybrid (PHEV), and battery electric vehicles (BEV) collectively rose from 17.8% of total light-duty vehicle (LDV) sales in Q1 2024 to 18.7% in Q2 2024. The growth was particularly pronounced in the HEV segment, which experienced a significant 30.7% increase in sales over this period.
Battery electric vehicles, which saw a dip in sales during the first quarter, regained momentum in the second quarter. BEVs accounted for 7.1% of U.S. LDV sales in Q2, a percentage consistent with figures from the same quarter of the previous year. This stabilization comes amid falling prices in the BEV market. The EIA highlighted that the average transaction price for BEVs in the U.S., excluding incentives, decreased from $57,405 in January to $56,371 in June 2024. This drop in prices narrowed the cost gap between BEVs and traditional LDVs, with BEV prices being just under 16% higher than the average LDV cost in June, compared to over 21% higher in January.
Another significant development in the EV market was the shifting market share among manufacturers. Tesla, historically the dominant player in the U.S. EV market, saw its share drop below 50% for the first time since 2017, capturing 48.9% of the market in Q2 2024. Legacy automakers such as Ford, Chevrolet, Hyundai, and Kia have gained ground, with Ford notably capturing 8% of the EV market in the second quarter. Ford also reported in July that its monthly EV sales had increased by 31% compared to the same period last year, marking six consecutive months of year-on-year growth for its EV segment.
From a production standpoint, the EIA noted a shift in the geographic origin of BEVs sold in the U.S. Nearly 75% of all BEVs sold in Q2 2024 were manufactured in North America, a slight decrease from the nearly 79% recorded in the same quarter last year. This change reflects evolving dynamics in global EV production and supply chains.
Overall, the latest EIA report underscores the resilience and growth potential of the U.S. EV market, despite recent fluctuations. As prices continue to fall and competition among manufacturers intensifies, the market is likely to see further expansion in the coming quarters.
Source # @oilprice.com,
@Jasikaran Vickneswaramoothy is a legal reporter for the Swiss Financial Times.
