As of April 2024, Tesla, the largest electric vehicle company in the US, held less than 50% of the new electric vehicle market share in the country. Automotive News reported that Tesla accounted for 47,350 (46.3%) of the 102,317 new EVs registered in the US during April 2024. This marks a significant decline of 17.5 percentage points from Tesla’s market share of 63.8% in April 2023.
On the other hand, the market share of companies excluding Tesla jumped from 36.2% in April 2023 to 53.7% in April 2024. From January to April 2024, Tesla (183,278 units) accounted for 50.1% of the new EVs in the US. Ford followed with 29,816 units.
Hyundai and Kia ranked third and fourth, with 20,009 and 16,579 units, respectively. Hyundai and Kia’s combined number of registered EVs is 36,588, 6,772 more than Ford. From fifth to seventh place were BMW (15,791 units), Rivian (15,045 units), and Mercedes-Benz (12,786 units).
Hyundai and Kia’s good sales performance in April 2024 was driven by the IONIQ 5 and EV6. The number of registered units of Hyundai’s flagship EV, the IONIQ 5, reached 4,078 units, nearly doubling compared to the same month last year (2,117 units). The number of Kia EV6 registrations increased by 93.8% to 2,178 units.
Tesla’s new EV market share decline in the US appears to be due to local tax credit policies and sales incentives for non-Tesla companies. Tesla’s electric sedan Model 3 was excluded from tax credits under the US Inflation Reduction Act (IRA) as it was equipped with Chinese batteries in January 2024. Tesla has changed the battery origin of its Model 3 long-lasting model since last month. Additionally, non-Tesla companies’ sales incentives were much higher than Tesla’s.
According to Automotive News, the Tesla Model 3 incentive is $10,392, which is relatively very low compared to the Ford Mustang Mach-E ($9,000) and the Toyota EV bZ4X ($10,963). However, there is also a view that incentives of around $10,000 will be difficult to sustain as they can act as a significant financial burden on manufacturers.
Hyundai Motor Group is scheduled to complete the construction of a new plant, Hyundai Motor Group Metaplant America (HMGMA), in Georgia, US, in the fourth quarter of 2024. Once the plant is operational, it will meet the North American assembly requirements to receive local EV tax credits.
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