In the first half of this year, sales of electric vehicles (EVs) in the U.S. auto market showed a slight decline compared to the previous year. However, EV sales for Korean brands like Hyundai Motor and Kia increased by 60.8% year-on-year.
The Korea Automobile Mobility Industry Association (KAMA) released a report titled “2024 First Half U.S. Electric Vehicle Sales Trends” today, which contains these findings. Electric vehicles include battery electric vehicles (BEVs), plug-in hybrids (PHEVs), and hydrogen fuel cell vehicles (FCEVs).
According to the report, U.S. EV sales in the first half of this year reached 708,509 units, marking a 6.4% increase compared to last year. The breakdown by vehicle type is as follows: 536,382 EVs, 171,805 PHEVs, and 322 FCEVs. PHEV sales rose 35.7% year-on-year, while EV and FCEV sales decreased by 0.2% and 82.4%, respectively.
Unlike the significant slowdown in the growth rate of electric car sales from 54.8% in the first half of last year to 6.4% this year, hybrid (HEV) sales increased by 35.6%, from 525,800 units in the first half of last year to 713,143 units this year.
The sales share by country shows that U.S. brands have a 66.2% share, European brands have 13.2%, Japanese brands have 10.4%, and South Korean brands have 10.2%.
Despite solid performances from companies like Ford and General Motors, Tesla experienced a sales decline, causing its market share to drop below 70%. European brands saw their EV sales decrease due to stricter incentive requirements under the Inflation Reduction Act (IRA), resulting in a 3.3 percentage point decline in market share.
Japanese brands increased production due to a wider release of new models and a normalization of supply chains, leading to a rise in EV sales by 101.7% and PHEV sales by 83.6%. Japanese EV sales surged by 84.1%, surpassing Korean brands. Korean brands saw EV sales increase by over 60%, but a decline in PHEV shipments resulted in an overall increase of 46.4% in EV sales.
In the first half of this year, the Tesla Model Y was the U.S.’s top-selling EV, capturing 35.5% of all EV sales. The Tesla Model 3 held the second position but saw its sales drop significantly, with its market share falling from 19.7% in the same period last year to 10.5%. Among the top 20 EVs, five models from Korean brands were featured, including the Hyundai Ioniq 5 in 4th place and the Kia EV6 in 10th.
The report explained that many companies are delaying or scaling back their electrification plans due to the recent slowdown in electric car demand and uncertainties surrounding the upcoming U.S. presidential election.
A KAMA representative stated, “With the U.S. presidential election approaching in November, uncertainties in policies related to electric cars and market volatility will increase,” but added, “In the mid-to long term, manufacturers’ transition to electric vehicles is inevitable.” The representative also emphasized the need to extend investment incentive programs, such as the national strategic technology tax credits, to respond to the upcoming post-chasm era.