Ford, Hyundai report large declines in EV sales

DETROIT — Sales of all-electric vehicles collapsed last month following the end of up to $7,500 in federal incentives for purchasing an EV, several automakers said Monday.

Ford Motor, Kia, Hyundai Motor and Toyota Motor reported massive declines in EV sales as many buyers pulled ahead purchases before the credits ended under changes by the Trump administration.

Ford, which ranked third in U.S. EV sales through the third quarter, reported a 25% drop in its year-over-year all-electric October sales. That included a 12% decline for its Mustang Mach-E crossover and a 17% fall for the F-150 Lightning.

Toyota reported it sold 18 units of its sole all-electric vehicle, named the BZ, in October. That was down from 1,401 units a year earlier and 61 vehicles the month before.

Kia and Hyundai reported their top EV models dropped between 52% and 71% from a year earlier. The declines are notably greater when looking month to month, as September marked the end of a record quarter for EV sales in the U.S. ahead of the credits ending.

Some models, such as Hyundai’s Ioniq 5 and Ioniq 9 EVs, fell by 80% and 71% from September to October, respectively, according to its reported sales. It was a similar story for comparable vehicles at Kia, which is owned by Hyundai Motor but largely operates separately in the U.S.

“While the expiration of the federal tax credit impacted EV sales in the month of October, we still saw strong demand leading up to that change, and we remain confident that the market is going to reset,” Hyundai Motor North America CEO Randy Parker told CNBC during a Monday interview.

Meanwhile, sales of hybrid vehicles for carmakers are expected to continue to rise. Sales of such models for each of the automakers were bright spots in October, the companies said.

Parker said Hyundai’s hybrid sales surged 41% last month compared with October 2024, leading its total “electrified” vehicle sales, which include EVs, to be up 8%.

Only a limited number of automakers report monthly sales, rather than quarterly, but the results are an early indication of the expected fall in EV sales following the end of the federal incentives.

“With the credit now off the table, the market appears to be settling into a more natural rhythm,” Jessica Caldwell, head of insights for CarMax’s Edmunds, said in a Monday blog. “October marks the start of a reset period: one defined less by incentive-driven urgency and more by buyers motivated by genuine interest in EV ownership.”

Ahead of the EV incentives ending, several automotive executives such as Parker and Ford CEO Jim Farley predicted a massive drop off in EV sales.

Farley late last month said he “wouldn’t be surprised” if sales of EVs fell from a market share of around 5% after the end of the incentives from a level of 10% to 12% in September.

Tesla, at a 43.1% market share, and General Motors, at 13.8%, led the U.S. automotive industry this year in record domestic sales of all-electric vehicles through the third quarter, according to data provided to CNBC from Motor Intelligence.

Cox Automotive’s Kelley Blue Book estimates EV sales volume in the U.S. hit an all-time high in the third quarter, reaching 438,487 units sold. That marked a 40.7% jump from the previous quarter and an increase of 29.6% year over year.