February brought both headwinds and tailwinds to the electric-vehicle market.
US EV and hybrid sales continued to grow, plus a new study signaled that satisfaction levels for EV owners are improving, and battery-powered models’ price tags are increasingly on par with gas-powered ones. On the other hand, there’s been a deluge of policy changes that could pull the floor mat out from under the auto sector.
First things first: Cox Automotive reported that total new-vehicle sales in February were slated to come in at around 1.22 million units, slightly below its forecast.
“The daily chaos from Washington has been negatively impacting consumer sentiment and likely contributing to lackluster consumer spending in February,” Cox Chief Economist Jonathan Smoke said. “The biggest worry I have for the spring continues to be the trend we’ve seen in interest rates, which moved higher in February.”
Cox noted the Trump administration’s vacillating moves to implement 25% tariffs on Canadian and Mexican imports, which are closely tied to US auto production. Changes to trade policy have been top of mind for the auto industry, with auto executives warning of the potential for major upheaval.
“The economy, the auto market, and the American consumer are now motoring an uncharted road,” according to Cox. “How automakers and consumers will react is the great unknown.”
By the numbers: Per S&P Global Mobility, battery-electric vehicles now make up 8.9% of the new-vehicle market.
American Honda’s sales were essentially flat in February, but the brand reported record electrified vehicle sales of 31,551 units.
Hyundai and Kia had another good month. Hyundai’s total US sales rose 3% YoY, while its electrified vehicle sales grew 35%. Kia, meanwhile, reported its best-ever February as well as its fifth consecutive monthly sales record, boosted in part by electrified models. Overall, the brand’s sales were up 7.2% YoY, while sales of EVs and hybrids were up 22%, also achieving an all-time record.
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Ford’s sales fell nearly 9% YoY in February, but EV sales rose 15%, while hybrids were up 27.5%.
Satisfaction improving: Elizabeth Krear, VP of JD Power’s EV practice, noted several positive EV trends to start the year, including growth in the percentage of new-vehicle shoppers who report being “very likely” to consider an EV to a high of 29%, and that the average transaction price (ATP) for EVs is now very close to the ATP for non-BEV vehicles.
“These tailwinds, however, are expected to be offset by headwinds as federal tax incentives, infrastructure funding, and regulations are expected to change,” she said.
JD Power now expects EV market share to “level off” at 9.1% this year, and to reach 26% by 2030.
In its 2025 US Electric Vehicle Experience Ownership Study, JD Power found some signs of progress on measures like ease of home charging, availability of public charging stations, and battery range. After a decline in 2024, satisfaction levels among both mass-market and premium EV owners improved, according to a news release.
The study also found that 94% of BEV owners “are likely to consider purchasing another BEV for their next vehicle,” while only 12% are likely to switch back to an internal combustion engine vehicle. And while mass-market BEV owners still report issues with public charging, their satisfaction levels are getting better.
“This temporary slowdown in market share growth for EVs creates a unique challenge for the industry as manufacturers forge ahead with new vehicle introductions,” Brent Gruber, executive director of the EV practice at JD Power, said in a statement. “The EV market will be faced with expanded product offerings and flat share, creating increased competition.”