April was a dynamic month for the electric vehicle market, showcasing a mix of challenges and opportunities.
New EV sales dipped both from the previous month and year, though their market share slightly grew in April compared to March. Manufacturer performance was mixed, with some seeing gains while others experienced significant drops. Conversely, the used EV market kept expanding, fueled by many affordable options.
Let’s dive into the details.
New EV Sales: A Mixed Bag
New EV sales in April dipped slightly both month-over-month and year-over-year, aligning with broader economic trends. However, the EV market share actually saw a small bump compared to March, hitting 6.9%.
Not all manufacturers experienced the same ride. While many saw a dip in sales, GM, Tesla, and Nissan bucked the trend with notable growth. Meanwhile, Ford, Hyundai Group, and VW Group faced declines. Tesla, despite its market share staying below 50%, still saw an increase of 3.7 percentage points, largely thanks to the continued popularity of the Model Y, which accounted for a quarter of all new EV sales.
GM brands also had a strong showing, collectively increasing their market share by 2 percentage points to 14.4%.
Looking ahead, market uncertainty and tariffs are expected to continue influencing EV sales. A recent Cox Automotive survey revealed that nearly half of consumers believe tariffs will significantly impact their decision to go electric.
Used EVs: The Growth Story Continues
The used EV market was a bright spot in April, experiencing significant growth. Sales surged by 14.4% month-over-month, reaching an all-time high of 38,763 units and securing a 2.3% market share. Even more impressive, year-over-year growth for used EVs hit a whopping 60.6%!
Tesla continued its dominance in the used market, with a 27% increase in volume and a 4.7 percentage point boost to its market share, now standing at 47%. Chevrolet and Ford also saw modest growth, holding market shares of 8.9% and 6.0% respectively. This robust growth in the used EV segment highlights its importance, especially as new EV sales face challenges related to affordability and availability. Used EVs are becoming a more accessible entry point for many buyers.
Inventory and Pricing: What You Need to Know
New EV inventory saw a slight increase in April, with the average “days’ supply” (how long it would take to sell all current inventory) rising to 99 days. This figure varied quite a bit across brands, with Lexus and Genesis having tighter stock, while Ford, Audi, and VW saw their inventories grow. This ebb and flow in supply reflects the dynamic nature of the EV market, influenced by production adjustments and consumer demand.
On the other hand, the used EV days’ supply actually declined, indicating that these popular models are moving off lots quickly. In fact, used EVs are now, on average, in shorter supply than traditional gasoline-powered vehicles. This tightening inventory suggests used EVs remain a highly attractive option for buyers.
When it comes to prices, the average transaction price (ATP) for new EVs in April was $59,255, a slight increase from the previous month and year. Interestingly, the price gap between EVs and traditional vehicles narrowed to $11,087. While EV incentives declined in April, they still remain more than double those for gasoline cars.
For used EVs, the average listing price in April was $35,874, a decrease from the previous month but an increase year-over-year. The price gap between used EVs and gasoline cars has also shrunk, now less than $2,000, the lowest since July 2024. While Tesla’s used prices saw a slight dip, some brands like Volvo (+9.6%) and Toyota (+4.4%) experienced price increases. The good news? 41% of used EVs sold in April were priced under $25,000, making now a potentially excellent time to consider a used EV, especially with the used EV tax credit still available.
[source: Cox Automotive]
