- The Energy Information Administration (EIA) revealed that battery electric vehicle (BEV) sales saw their first decline since the onset of the COVID-19 pandemic.
- Eight out of ten BEV sales in the United States during this period were luxury models, showcasing a trend attributed to the availability of luxury BEV options and competitive pricing.
- Automaker Response: U.S. automakers, including Ford Motor Company, are adjusting strategies in response to sluggish consumer adoption of EVs.
In the first quarter of 2024, electric vehicle (EV) sales including hybrid vehicles, plug-in hybrid electric vehicles, and battery electric vehicles (BEVs), constituted 18% of all new light-duty vehicle sales, a slight decrease from the previous quarter’s 18.8%. The Energy Information Administration (EIA) reported that BEV sales experienced their first decline since the onset of the COVID-19 pandemic in 2020, dropping from 8.1% to 7.0% of the total light-duty vehicle (LDV) market.
This decline, highlighted by the EIA’s analysis, marks the first decrease in BEV market share since the pandemic’s economic repercussions began in the second quarter of 2020. Notably, in the first quarter of 2024, eight out of ten BEV sales in the United States were luxury models.
This trend is attributed to the abundant availability of luxury BEV options and competitive pricing, particularly from notable brands like Tesla, Mercedes, Rivian, Cadillac, Audi, and BMW. However, US automakers have been signalling a slowdown in consumer adoption of EVs since the latter part of the previous year.
Ford Motor Company recently announced a delay in the planned rollout of some next-generation electric vehicles. This decision aligns with the company’s strategy to expand hybrid vehicle offerings amidst indications of subdued consumer interest in EVs.
Ford stated in April 2024 that the extended timeline will allow for further development of the consumer market for three-row EVs and enable the company to capitalize on emerging battery technology, aiming to enhance durability and provide better value to customers. While the International Energy Agency (IEA) maintains an optimistic outlook on the global EV market, concerns loom within the auto industry regarding slowing EV sales, especially with the phase-out of subsidies in key markets and persistent consumer doubts regarding affordability and range.
The US EV market appears stagnant, with Tesla facing challenges. Additionally, Europe witnessed a decline in new car sales in March, attributed partly to a decrease in EV registrations and the timing of the Easter holidays.