Sales of all-electric and hybrid vehicles reached a significant milestone last year, accounting for 20% of all new car and truck sales in the U.S. This achievement marks a turning point for “green” vehicles, even though the adoption rate has progressed more slowly than many had initially predicted.
According to auto data firm Motor Intelligence, over 3.2 million electrified vehicles were sold in 2024. This total includes 1.9 million hybrid vehicles, such as plug-in hybrids, and 1.3 million fully electric models.
While traditional gas and diesel internal combustion engine vehicles continued to dominate the market, their share fell to 79.8%, dipping below 80% for the first time in the modern automotive era.
In the all-electric vehicle (EV) market, Tesla maintained its leading position, though Cox Automotive estimated that Tesla’s annual sales declined, and its market share dropped to about 49% from 55% in 2023. The Tesla Model Y and Model 3 were projected to be the top-selling EVs of 2024.
Hyundai Motor, including its Kia subsidiary, followed Tesla with 9.3% of the EV market share. General Motors secured 8.7%, Ford Motor held 7.5%, and BMW rounded out the top five with 4.1%, according to Motor Intelligence.
The U.S. EV market remains intensely competitive. Out of 68 mainstream EV models, 24 recorded year-over-year sales growth, 17 were new entrants to the market, and 27 saw sales declines.
Uncertainty clouds the outlook for all-electric and plug-in hybrid electric vehicle sales in 2025, largely due to potential policy changes by the incoming Trump administration. Currently, federal subsidies of up to $7,500 for EV purchases play a crucial role in supporting sales, but these incentives and other pro-EV policies could be rolled back.
Despite these concerns, Cox Automotive predicts another record year for EV sales in 2025, with EVs expected to make up around 10% of all new vehicle sales. Including hybrids, electrified vehicles are projected to represent one out of every four vehicles sold this year.