Particle.news
Download on the App Store

U.S. EV Market Share Projected to Sink to 5% in October After Tax Credit Ends

Analysts attribute the slide to a pre‑deadline buying surge after the $7,500 credit ended.

Overview

  • J.D. Power and GlobalData estimate EVs will account for 5.2% of October new‑vehicle retail sales, down from September’s 12.9%, based on the first 16 of 27 selling days.
  • Thomas King of J.D. Power said the early‑month collapse stems largely from purchases pulled into summer and September before the Sept. 30 credit expiration.
  • Manufacturers have increased EV discounts to an average of $13,161, and some, including GM via GM Financial, raised lease residuals to approximate the lost $7,500 benefit.
  • J.D. Power reports fully electric and plug‑in hybrids are posting the steepest October declines as traditional hybrids rise, with HEV market share up to 14.2% year over year.
  • The firm projects the average new‑vehicle price at $46,057 and average incentives at $2,674, with retailer profit per vehicle at $2,295, while total new‑vehicle profits and consumer spending are down year over year.