American EV sales enjoy second best month ever, despite Trumpian headwinds

Sale of new electric vehicles (EVs) in the United States increased in July to post their second best ever month, despite and perhaps because of the policy machinations of the country’s president.

In their EV Market Monitor for July, Cox Automotive reveals that new and used EV sales rose sharply last month due in large part to consumers accelerating their purchases ahead of the expiry of the Inflation Reduction Act’s (IRA’s) tax credit.

“Inventory tightened, incentives climbed, and pricing adjusted – highlighting a market still heavily influenced by policy support but increasingly responsive to real-time demand,” Cox Automotive concluded.

esla

In July, new EV sales reached 130,082 units, up 26.4 per cent month over month and 19.7 per cent year over year, helping to secure a market share of 9.1 per cent. This marked the second-highest monthly total for new EV sales on record and saw 11 brands post their best EV sales of the year so far.

Strong gains were seen by all top five brands, including Tesla with 53,816, ahead of Chevrolet, Hyundai, Ford, and Honda. Most notably, German automaker Volkswagen surged 454 per cent year-over-year to take sixth place.

Used EV sales also rose, reaching 36,670 units in July, up 23.2 per cent month over month and 40.0 per cent year over year, resulting in a 2.2 per cent share of the overall used-vehicle market.

Tesla topped the best-selling used brands by volume with 15,903 units sold in the month of July, well ahead of its competitors Chevrolet with 3,499, Ford with 1,967, Mercedes-Benz with 1,724, and Nissan with 1,659.

Cox Automotive also published average transaction price (ATP) data, which showed that the ATP for July declined to $US55,689 ($A86,000), reflecting a 2.2 per cent decrease from June and a 4.2 per cent decline year-over-year.

This drop also narrowed the price cap to ICE+ vehicles, down to only $7,611, the smallest gap since December of 2024. However, this came at the same time as EV incentives rose for the fourth consecutive month, hitting a new record of 17.5 per cent of ATP, or around $9,768.

Despite the good news, Cox Automotive is unsure whether the good times will continue to roll on.

“With the IRA tax credit set to expire at the end of September, urgency is likely to remain high, positioning the EV market for continued strength through the remainder of Q3,” it says.

“July’s performance sets a strong precedent, and as policy support winds down, the market’s ability to respond to real-time demand and brand-level dynamics will be critical in shaping the next phase of growth.”