U.S. electric vehicle (EV) sales are projected to reach new heights in 2025, accounting for one in four vehicles sold, according to Cox Automotive’s 2025 Outlook report. The forecast reflects growing consumer interest in EVs, aided by a surge in new models, expanded incentives, and an improving economic outlook.
Cox Automotive predicts the U.S. auto market in 2025 will be the strongest since 2019, driven by a robust finish to 2024. While most automakers posted year-over-year growth in 2024, notable exceptions included Stellantis and Tesla. General Motors emerged as the top-selling automaker, with Honda and Mazda also showing substantial gains.
The EV market continues to accelerate, with record sales in 2023 and 2024. EVs are expected to capture around 10% of the total U.S. market in 2025, up from 7.5% last year. Hybrid and plug-in hybrid vehicles are projected to account for an additional 15% of sales, while internal combustion engine (ICE) vehicles will see their market share decline to 75%—the lowest level on record.
Factors supporting EV growth include the introduction of 15 new EV models in 2025, state-level incentives countering potential federal tax credit reductions, and continued expansion of charging infrastructure. Consumers are also motivated to purchase EVs before potential policy changes under the Trump administration that could reduce the $7,500 tax credit.
“Consumers are feeling better about the road ahead,” Cox Automotive noted, citing stabilized interest rates, a strong job market, and a smooth resolution to the U.S. election as contributing factors.
