With the end of the year looming, the EV market has a milestone in its sights: reaching 10% of the new-vehicle market.
Sales of battery-electric, plug-in hybrid, and hybrid vehicles once again appeared to be strong for numerous automakers in October, according to industry reports, and experts say that all-electric vehicles now consistently make up over 8% of sales. And overall, despite supply-chain disruptions tied to extreme weather events, last month the auto industry appeared on track to achieve double-digit YoY sales growth.
S&P Global Mobility estimated that October sales would increase 11% YoY and that BEVs’ market share would remain above 9%.
“Assisted by the sustained rollouts of vehicles such as the Chevrolet Equinox EV and Honda Prologue and to be followed by new BEVs such as the Polestar 3, Jeep Wagoneer S, and Volkswagen ID. Buzz slated for release in the fourth quarter,” according to the firm’s forecast, “electric vehicle sales are expected to advance over the remainder of the year.”
Let’s dig into results from the automakers that report sales on a monthly basis.
Sister brands Kia America and Hyundai Motor America reported robust October sales and pointed to the momentum around their respective electrified models as one reason.
Kia reported its best ever October sales, boosted by sales of its BEVs, PHEVs, and hybrids growing 70%, 65% and 49% YoY, respectively.
“Kia continues to appeal to a broad range of consumers as we offer 10 compelling utility models, many with a choice of all-electric, plug-in hybrid, hybrid, and ICE powertrains,” Eric Watson, the brand’s VP of sales operations, said in a statement.
Hyundai, meanwhile, notched 71,802 new-vehicle sales in the US last month, up 18% YoY. The brand hit sales records for models including the electric Ioniq 5 and hybrid versions of the Tucson and Santa Fe. Overall, hybrid sales jumped 91% YoY. Sales of the electric Ioniq 6, however, dropped.
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“Hyundai has set a total sales record in the month of October for the third consecutive year,” CEO Randy Parker said in a statement. “The Santa Fe HEV, Tucson HEV, and Ioniq 5 led the way, showcasing strong demand for our electrified vehicles that offer cutting-edge technology and exceptional design.”
Sales were also up for American Honda, which reported more than 110,000 sales for a YoY gain of 2.1%, despite supply-chain issues. The automaker reported strong results in the hybrid segment, with hybrid versions of its CR-V and Accord models, for example, representing more than 50% of sales.
Volvo’s US sales fell 17% YoY in October, but sales of electrified models grew 18% over October 2023.
Ford’s US sales were up 15.2% YoY last month, but the automaker’s EV sales fell 8.3%. Hybrids, however, soared nearly 40%. The weak EV results come after the automaker opted to halt production of its electric F-150 Lightning pickup truck through the end of the year amid slower demand.
Elizabeth Krear, VP of JD Power’s EV practice, noted in a statement that automakers are incentivizing EV sales at higher rates than ICE vehicles. As a percentage of MSRP, incentives on electric models are averaging 11.5%, up from 4.7% a year ago and compared to only 6% for gas-powered vehicles.
“While typical changeover, incentives and inventory would imply the continued pricing actions to move older vehicles,” she said, “the result of the upcoming election might also influence policy changes, consumer confidence, and consideration of EVs.”