Ford, Hyundai report large declines in EV sales

DETROIT — Sales of all-electric vehicles fell last month after federal incentives for electric vehicle purchases increased to as much as $7,500, several automakers said Monday.

Ford MotorKia, Hyundai Motor and Toyota Motor He reported that there were major declines in EV sales as many buyers continued to purchase before the loans expired under the changes made by the Trump administration.

Ford, which ranked third in U.S. electric vehicle sales in the third quarter, reported a 25% year-over-year decline in October sales. This includes a 12% drop in the Mustang Mach-E crossover and a 17% drop in the F-150 Lightning.

Toyota reported that it sold 18 units of its sole all-electric vehicle, called the BZ, in October. This was down from 1,401 units a year ago and 61 vehicles in the previous month.

Kia and Hyundai reported that their top EV models were down between 52% and 71% from the previous year. On a month-to-month basis, the declines are considerably larger; September marks the end of a record quarter in EV sales in the US before the credits expire.

According to reported sales, some models, such as Hyundai’s Ioniq 5 and Ioniq 9 EVs, fell 80% and 71%, respectively, from September to October. It was a similar story for similar vehicles at Kia, which is owned by Hyundai Motor but operates largely separately in the United States.

“While the expiration of the federal tax credit impacted electric vehicle sales in October, we continue to see strong demand driving this shift and are confident the market will reset,” Hyundai Motor North America CEO Randy Parker said in an interview with CNBC on Monday.

Meanwhile, hybrid vehicle sales to automakers are expected to continue increasing. Sales of such models for each automaker were bright spots in October, the companies said.

Hyundai’s hybrid sales rose 41 percent last month compared to October 2024, leading to an 8 percent increase in total “electric” vehicle sales, including electric vehicles, Parker said. Pure EV sales fell 57% last month compared to October 2024, following a 157% year-on-year increase in September, the company said.

Only a limited number of automakers report sales monthly rather than quarterly, but the results are an early indicator of the expected decline in EV sales after federal incentives expire.

“With credit now off the table, the market appears to be settling into a more natural rhythm,” said Jessica Caldwell, president of Insights. CarMax Edmunds said: monday blog. “October marks the beginning of a reset period: one defined by buyers with a genuine interest in EV ownership rather than incentive-driven urgency.”

Before the end of electric vehicle incentives, many automotive executives, such as Parker and Ford CEO Jim Farley, predicted a major decline in electric vehicle sales.

Farley said late last month that he “wouldn’t be surprised” if the market share of electric vehicle sales fell to around 5% after incentives increased from 10% to 12% in September.

Tesla’swith 43.1% market share and General EnginesAt 13.8%, it continued to lead the U.S. auto industry in record domestic all-electric vehicle sales in the third quarter this year, according to data provided to CNBC from Motor Intelligence.

Cox Automotive’s Kelley Blue Book predictions EV sales volume In the US, 438,487 units were sold in the third quarter, reaching an all-time high. This represents an increase of 40.7% compared to the previous quarter and a year-on-year increase of 29.6%.

Clarification: This article has been updated to clarify the description of Farley’s statements.