A recent Urban Science report found electric cars sales gained market share in the third quarter of 2024, rising to 22.1 percent of all retail sales, a 3.1 point increase compared to the same time last year.
Combined sales of battery electric vehicle (BEV), plug-in hybrid electric vehicle (PHEV) and hybrid electric vehicle (HEV) segments translated to nearly 100,000 more electric vehicles sold in Q3 2024 compared to the same time a year ago.
Among the three major electric powertrains, HEVs saw the strongest sales growth in the third quarter, increasing by 24.4 percent compared to the same time period in 2023.
Hybrid Growth
This surge underscores the appeal of hybrid technology, which offers a blend of electric efficiency with the convenience of traditional fuel, according to the authors of the report. BEV sales volume continued its rise, increasing by 11.7 percent in July, August and September, compared to the same time period in 2023. PHEV sales volume was down slightly, but most of that decline is attributed to the segment’s share leader, the Jeep brand. Nearly all other brands increased in PHEV sales volume during this period.
California retail sales continued to contract while electric vehicle sales continue to grow. The California retail market—comprising all powertrains—is 3.8 percent smaller this year through Sept. 30, 2024, potentially due to shifts in population density as residents move out of the state, changing demographics and concerns over vehicle affordability—an issue that nearly 70 percent of U.S. auto buyers cite as a significant factor when considering a new vehicle.
Despite these challenges, most electric vehicle powertrain sales in California have still grown considerably, up 8.1 percent in the last quarter compared to a year earlier. This includes HEVs (up 26.8 percent), PHEVs (up 2.1 percent) and BEVs (down 0.9 percent) year-to-date compared to the same period in 2023.
Shining in the South
However, Tesla’s recent declines in the Golden State continued in Q3 with the brand’s sales volume declining by 8.2 percent. Furthermore, the Elon Musk-led company lost about seven percentage points of BEV market share during compared to the same quarter last year.
Florida truly shined regarding electric vehicle retail sales this year. Despite having no statewide regulatory or incentive programs, all three major electric powertrains continued to increase in sales volume: HEVs (up 42.9 percent), PHEVs (up 31.5 percent) and BEVs (up 31.4 percent).
Tesla sales in the Sunshine State are up 19 percent, compared to the same time period last year. But the company is losing market share due to an increasingly competitive BEV market.
Texas’ Time?
Texas BEV growth is flat in Q3 2024, HEV growth continued its steep ascent. The Lone Star State saw a moderate increase in BEV retail sales volume through the first three quarters of 2024 (up 5.4 percent compared to the first three quarters of 2023).
However, BEV sales flatlined at 0.5 percent growth while other segments soared. This stagnancy was primarily driven by Tesla, which although headquartered in Texas, experienced an 8.4 percent decrease in sales volume for 2024.
The non-Tesla BEV segment in Texas has grown , but not enough to offset Tesla’s decline. HEV sales in Texas, however, have increased significantly with sales volume soaring 44.5 percent year-to-date.
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