Electric vehicle (EV) sales took a predictable dip in January, following a record-breaking December. Americans purchased 102,243 EVs last month — a 23% decline from December, according to new data from Cox Automotive. However, the seasonal drop doesn’t tell the full story. Year-over-year, EV sales grew over 30%, showing sustained momentum in the transition away from gas-powered cars.
EVs accounted for a record 9.1% of all new car sales in January. While this figure still leaves plenty of room for growth, it signals increasing consumer interest in electric mobility.
Tesla
Even amid declining sales, Tesla dominated among the top-selling models, with the Model Y and Model 3 leading the pack. Volkswagen’s ID.4 saw a surprising 653% increase in sales, selling nearly 5,000 units,— suggesting that supply chain improvements and increased incentives contributed to its resurgence.
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Used EV market gains traction
The used EV market, though still a small slice of the overall industry, is expanding rapidly. Sales of used EVs jumped 31% year-over-year, reaching 26,933 units in January. Month-over-month, sales saw a modest 3.5% increase, reinforcing growing demand.
VW
Affordability is a key factor driving used EV sales. Nearly 40% of used EVs sold were priced under $25,000, making them an attractive option for budget-conscious buyers. The average used EV price fell 5.1% year-over-year to $37,476, with certain brands — including Chevrolet, Jaguar, and Toyota — seeing lower average used EV prices compared to their gas-powered counterparts.
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EV supply and pricing trends
Inventory levels for new EVs increased slightly in January, with the average days’ supply rising 5.3% month-over-month to 87 days. Despite this, EV inventory remains below that of traditional internal combustion engine (ICE) vehicles, indicating steady demand. Volkswagen saw the biggest drop in supply, while Lexus experienced the largest increase.
Kia
For used EVs, supply remains tight. The average days’ supply decreased by 3% compared to December, bringing it down to 45 days — a 23% decline from last year. This trend suggests growing confidence in used EVs, aided by factors like extended battery warranties and federal tax credits.
On the pricing front, new EVs averaged $55,614 in January — up slightly from December but down 1.4% compared to last year. Incentive spending was lower month-over-month but remained 48.6% higher year-over-year, with brands like Volkswagen, Subaru, Kia, and Nissan offering the most generous discounts.
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Final thoughts
While January’s dip in new EV sales follows historical seasonal trends, the broader picture remains positive. Record market share, increasing affordability in the used EV segment, and strong consumer demand suggest that the EV market is far from slowing down.
As the Trump administration moves to repeal the $7,500 federal EV tax credit, we wouldn’t be surprised to see more drivers buying EVs before the credit is gone. As automakers refine their strategies and more models become available at lower price points, 2025 could shape up to be another landmark year for electric vehicles.
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