| | | "Auto has tremendous potential but is coming out at a time of serious stress within the industry (high car cost, low consumer demand and EVs giving way back to gasoline)."
Dont mix slowing with declining. Also, dont use the US market as a worldwide proxy.
From Google AI: "EV sales are growing year-over-year, gaining market share from gas-powered cars, though the pace of EV growth has recently slowed, and hybrid sales are also on the rise. In contrast, gas-powered car sales are declining, with a negative year-over-year trend, despite overall car sales increasing in the first half of 2024. The trend shows a continued shift toward electrified vehicles (EVs and hybrids), with traditional gas cars losing market share.
Electric vehicle (EV) trends
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Increasing sales and market share:
EV sales are increasing annually, though the growth rate has recently slowed.
- Market share is climbing:
In the U.S., EVs accounted for about 7.9% of new vehicle sales as of early 2025, up from 7.7% in 2024 and 6.9% in 2023.
- Price decreases:
The average price of new EVs has dropped, and used EV prices have fallen significantly, making them more competitive with gas cars.
- Competition from hybrids:
The popularity of hybrids is also increasing, which is impacting the growth rate of pure EVs.
Gas-powered vehicle trends
- Declining sales: Gas-powered car sales are down year-over-year.
- Losing market share: The market share for gas-powered cars has dropped to its lowest point.
- Contrasting with overall car sales: While gas car sales are down, the overall car market saw an increase in sales during the first half of 2024 compared to the previous year.
What this means
- The long-term trend is a transition away from gas-powered cars towards electric and hybrid vehicles.
- While pure EV sales are still growing, the recent surge is more moderate compared to previous years.
- Hybrids are a popular "bridge" option, and their rising popularity is contributing to a slowdown in the growth rate of pure EVs.
- Falling EV prices and government tax credits are making EVs more accessible and helping to narrow the price gap with gas-powered cars."
While US tax incentives certainly impact EV sales, the US market is but a slice of worldwide EV sales.
Once a production cost inflection point is reached, EVs are cost competitive with gas powered cars. Weve reached that point - at least in the car manufacturing capital of the world, China.
I've seen statistics of consumers switching from gas to EVs and that number dwarfs consumers who switch from EV back to gasoline. |
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