In April, U.S. electric vehicle sales, which had been sluggish due to the automobile tariff repercussions from the Donald Trump administration, are reviving. However, the automotive industry widely expects this recovery trend to be temporary.
On the 6th (local time), according to market research firm Motor Intelligence, U.S. automobile sales in August recorded 16.4 million units, a 3.7% increase compared to the previous year. The Wall Street Journal (WSJ) reported that Toyota, Hyundai, and Kia Motors saw double-digit increases compared to the previous year this week, and Ford also showed consistent growth across all vehicle types.
In particular, the increase in electric vehicle sales was notable. According to market research firm JD Power, the proportion of electric vehicles in total automobile sales rose from about 8% to over 11%. In contrast to just the previous second quarter, when U.S. electric vehicle sales dropped by 6.3% year-on-year to 331,853 units, this growth is significant.
Last month, Ford's electric vehicle Mustang Mach-E sold 7,226 units in the U.S., setting an all-time high sales record. During the same period, Ford's total electric vehicle sales increased by 19%. Hyundai's electric vehicle sales also surged 72% in August, reaching 10,165 units, with the Ioniq 5 reportedly leading this growth.
WSJ noted, "Consumers are hastily taking advantage of the soon-to-expire electric vehicle tax credit, and (auto manufacturers) have maintained stable prices despite the tariff." The U.S. federal government has been providing a $7,500 tax credit benefit for electric vehicle purchases through the Inflation Reduction Act (IRA) created by former President Joe Biden, but the Trump administration decided to eliminate this benefit starting next month.
As a result, there are concerns that electric vehicle sales will plummet once the tax credit ends. Randy Parker, CEO of Hyundai Motor's North American headquarters, said, "We expect electric vehicle demand to decline in the fourth quarter." However, he added, "I believe the electric vehicle market will continue to grow after market stabilization."
Some automakers are already taking measures to reduce workforce and cut electric vehicle production in anticipation of decreased demand. A representative example is General Motors, which will reduce its operations from two shifts to one shift at its Cadillac electric SUV plant in Tennessee starting in December. A spokesperson for GM stated, "We are making strategic production adjustments to align with the slowdown of growth in the electric vehicle industry and customer demand."
With electric vehicle price increases planned, it is becoming increasingly difficult for sales growth to continue. Until now, companies have absorbed the losses caused by automobile tariffs to maintain market share, but ultimately, they have no choice but to reflect those costs in prices. Tyson Jominy, vice president of data and analytics at JD Power, said, "While tariff costs are indeed incurred, manufacturers have been absorbing them relatively limits until now."