US electric vehicle sales are expected to continue growing in 2025 after breaking a quarterly record last year, according to research firm Cox Automotive.

In Q4 2024, EV sales increased by 15% year-on-year to 365,824. Full-year sales rose 7.3% to 1.3 million units compared to 2023, boosted by government and automaker incentives plus “excellent lease deals,” Cox notes.

US consumers can currently access purchase tax credits of up to $7,500 for certain vehicles under the Biden administration’s Inflation Reduction Act (IRA). Incoming president Donald Trump has threatened to end these benefits when he returns to office.

These changes are feared to hit EV sales growth, but analysts at Cox reckon they “won’t take effect for some time, and many buyers might jump in before changes are made.”

Indeed, the company predicts that 2025 will be “another record for EV volume” with “one out of every four vehicles sold” being electrified. The EV market share is estimated to grow from 8.1% in 2024 to around 10% this year, Kallanish understands.

Across 2024, General Motors, Honda, Hyundai and Ford posted a rise in EV sales, while volumes contracted for Tesla, VW and Mercedes-Benz. Yet, the Tesla Model Y and Model 3 continue to be the best-selling electric vehicles in the country, even though their volumes are declining.

The Ford Mustang Mach-E was the best-selling EV not made by Tesla, followed by the Hyundai Ioniq 5. Notably, the Honda Prologue became the 7th most popular EV in the US, from zero sales in 2023.

The figures cover light-duty vehicles.