Record Electric Vehicle Demand
Major automakers reported strong third-quarter results as electric vehicle (EV) sales surged ahead of the expiration of federal tax incentives worth up to $7,500. Ford, General Motors, and Hyundai each posted record EV deliveries between July and September. GM and Ford both said overall sales rose about 8% from the prior year, with GM’s EV sales more than doubling and Ford’s climbing 30%. Hyundai recorded a 13% year-over-year sales increase, led by a similar doubling in EV sales.
GM Maintains Market Leadership
GM said it remained the leading U.S. automaker in sales through the third quarter, with an estimated market share of 17.2% — its strongest position since 2015. “No one is in a stronger position for a changing U.S. market than GM,” GM North America President Duncan Aldred said, noting that the company’s lineup of both internal combustion and electric vehicles has fueled market share gains, supported by firm pricing, low incentives, and steady inventory. GM also projected the industry-wide sales pace at 16.7 to 16.9 million units for the quarter, outpacing earlier estimates.
Incentives Drive Consumer Behavior
The surge in EV sales was fueled by consumers moving up purchase plans before the end of federal tax credits in September. Ford CEO Jim Farley cautioned that EV demand could dip sharply after incentives expire, potentially falling from a record 10–12% market share this month to around 5%. Despite this, the third quarter is expected to stand as a milestone for the U.S. EV market, with incentives playing a decisive role in consumer decisions.
Forecasts and Market Impact
Cox Automotive estimated EV sales hit 410,000 units in the third quarter, up 21% from last year and securing a record 10% share of the U.S. auto market. The combined sales of EVs and plug-in hybrids that also qualified for the incentives are expected to lift overall vehicle sales by between 4% and 7%, according to forecasts from Cox and Edmunds. Even as the industry braces for a possible slowdown following the end of subsidies, Q3 confirmed a historic step forward for electrification in the U.S. auto sector.
