Demand for electric vehicles is waning, with new car buyers opting for more affordable hybrids and PHEVs. That doesn’t mean that the EV market is waning, with new registration data showing growth in 2024, reports Automotive News.
According to new registration data from S&P Global Mobility, battery-electric vehicle registrations hit 96,385 in March, a 3.8% year-on-year increase. New EV registrations were responsible for 7.1% of the overall market, up from 6.8% in March 2023. While that’s not the rapid growth automakers have hoped for, a slight uptick in sales is encouraging for companies that have invested millions of dollars in electrification.
2024 Tesla Model 3
Tesla Still In The Lead, But Slowly Losing Market Share
Tesla dominates the charts, with a whopping 50,474 registrations stemming from the EV-only brand. Despite this, the brand suffered a 12% fall in March registrations. It was even lower in February, with a 25% drop compared to the previous year. This shows that Tesla is slowly losing its EV market share. In 2020, more than 80% of EVs sold were Teslas. This has fallen to 52.4% in March.
“There’s a lot of other brands we knew were coming [with EVs], and they’re here, and they’re competitive,” said Tom Libby, associate director of industry analysis at S&P Global Mobility. “When Tesla had 80 percent of the EV market, the standard thinking was that it couldn’t last,” he added. While that’s true, Tesla is still far ahead of the competition, with Ford (8,418), Hyundai (5,686), BMW (4,246), and Kia (3,800) trailing behind.
Model 3 Registrations Fell By 61%
Surprisingly, Tesla’s downfall is its cheapest car, the Model 3. Even though the compact sedan was drastically improved with last year’s facelift, Model 3 registrations fell by 61% compared to March 2023, marking the fifth month in a row where declines were noted. This could have to do with the popular sedan losing the $7,500 tax credit, but the Performance and Long Range are now available with the lucrative incentive once more.
“If you pull the Tesla numbers out, both February and March were good for EVs, but it’s being masked because of this situation with Tesla,” added Libby. While growth is slow, some growth is still better than nothing. Despite this, several manufacturers have changed their electrification plans. General Motors has plans to introduce new plug-in hybrids by 2027, while Mercedes-Benz, Kia, Hyundai, and Land Rover all plan to offer hybrids and PHEVs to cater to a broader range of customers. It will be interesting to see how EV registrations fare for the rest of 2024 and whether Tesla will be able to claw back its massive market share.
Source: S&P Global via Automotive News
