Summary
- EV registrations grew by 25 percent in December
- Total battery-electric registrations increased to 144,070
- EVs made up 9.9 percent of the overall market share of light vehicles
- Uncertainty around the $7,500 EV tax credit led to increased sales
- Tesla dominated the registration data with 65,455 units registered
Article
Recently, data from S&P Global Mobility showed a substantial increase in electric vehicle (EV) registrations in December, despite uncertainties surrounding the $7,500 EV tax credit under the then-incoming U.S. President Donald Trump’s administration. The data revealed a 25 percent growth in EV registrations, with a total of 144,070 battery-electric vehicles registered, up from 115,217 in 2023. EVs also accounted for 9.9 percent of the overall market share of light vehicles, compared to 8.5 percent the previous year.
S&P Global Mobility analyst, Tom Libby, noted that while there have been discussions about EV growth slowing down, the recent data shows that EVs are still growing. The increase in registrations in December was attributed to uncertainties surrounding the future of the $7,500 EV tax credit and the deployment of incentives by manufacturers to boost sales at the end of the year. AutoPacific president and chief analyst, Ed Kim, described December as an abnormal month with both year-end deals and concerns about losing the tax credit contributing to the growth in EV registrations.
Kim also mentioned that the tax credit could potentially remain in place for months, which could further boost EV sales in 2025. Despite concerns about Tesla’s brand facing challenges due to CEO Elon Musk’s association with the Trump administration, Kim emphasized that Tesla has a strong reputation and equity built into the brand. In terms of registration data, Tesla led with 65,455 units registered, followed by Ford, Chevrolet, Honda, and Hyundai making up the top five nameplates.
The data from S&P Global Mobility highlighted the growth in EV sales for December 2024, indicating a positive trend for the EV market. The increase in registrations during a time of tax credit uncertainty suggests that consumer interest in EVs remains strong, and incentives offered by manufacturers play a significant role in boosting sales. The potential for the tax credit to remain in place for an extended period could provide further momentum for EV sales in 2025.
Overall, the data reflects a positive outlook for the EV market, with strong growth in registrations despite challenges and uncertainties surrounding government policies and incentives. The success of Tesla and other leading EV manufacturers in the market indicates a growing demand for electric vehicles among consumers. Moving forward, continued support and incentives for EV adoption could further drive the growth of the EV market and contribute to a more sustainable transportation future.
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