Post-incentive slump: US EV sales down 28%
According to new figures from Cox Automotive, new battery-electric vehicle registrations in the US declined by 28 per cent year-on-year in the first quarter of 2026, reaching 212,600 units. With only a few selling days remaining in March, the overall trend is unlikely to shift significantly.By comparison, the market research firm recorded 296,304 new BEVs in Q1 2025 – a result that at the time marked a clear year-on-year increase.However, the overall US light vehicle market also fell well short of the volumes seen at the end of 2025. As a result, the EV share of new car sales held steady at 5.8 per cent compared to Q4 2025, indicating no sharp downturn—despite a turbulent final quarter marked by the expiry of federal EV tax credits.The record share of 7.5 per cent reached in Q3 2025, driven largely by pull-forward effects from advance purchases, is unlikely to be repeated in the near term.The impact is already becoming evident in the market. In the US, days-to-turn remains a key indicator: battery-electric vehicles currently sit on dealer lots for an average of 130 days, compared to 89 days for internal combustion models. Each additional day in inventory increases costs for dealers—and ultimately leads to higher discounting to clear stock.According to Stephanie Valdez Streaty, Director of Industry Insights at Cox Automotive, average transaction prices for new electric vehicles fell to $55,300 in February. This narrows the price gap to comparable petrol models to $6,500—an all-time low, according to Cox.At the same time, the used EV segment is gaining traction: sales rose by 12 per cent to 93,500 units. Prices are now just $1,300 above those of comparable petrol vehicles. Used BEVs also turn faster, spending an average of 42 days on dealer forecourts—only four days longer than petrol equivalents.Tesla dominated US BEV sales in Q1 2026, delivering 122,196 units and capturing a 57.5 per cent market share. While the overall BEV market contracted by 28 per cent year-on-year, Tesla’s volumes declined by just 4.6 per cent. Across all powertrains, the company achieved a total US market share of 3.3 per cent.The latest data also underlines the impact of the expired federal tax credit. “The $7,500 tax credit was the bridge that made new EV pricing competitive,” concludes the US portal Electrek. “Without it, consumers who are price-sensitive enough to be motivated by gas prices are finding a better deal in the used EV market — or opting for a hybrid”In Q4 2025, electrified vehicles accounted for 26 per cent of all new car sales in the US, although fully electric models made up just 5.8 per cent. Hybrids recorded particularly strong growth, with volumes rising 57 per cent year-on-year to 756,000 units.How the balance between BEVs and hybrids (HEVs) develops over the course of the year—alongside political factors—remains to be seen. Data from Cox Automotive also indicates that its hybrid and plug-in index climbed well above baseline levels in February and March.In other words, rising petrol prices in the US—triggered by the Iran war—are already driving increased consumer interest in electrified powertrains.electrek.co, coxautoinc.com (PDF)
