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EVs and hybrids outperform overall industry results in Q2

Several automakers reported significant growth in electrified vehicle sales even as overall results were lackluster.
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The second quarter wasn’t all sunshine and roses for the US auto industry, thanks in part to a cyberattack that caused widespread software outages at dealerships across the country last month.

But at least for some automakers, electrified vehicles represented a bright spot in an otherwise lackluster quarter.

GM, for example, posted its best-ever quarterly EV sales (21,930 units, up 40% YoY) even as its overall sales were nearly flat.

“We have an incredible portfolio of diverse vehicles and we’re flexible, so we can win as more customers embrace EVs and we can keep winning if they want to stay with the engine technologies they know,” Marissa West, GM SVP and president, North America, said in a statement.

Flexibility is a buzzword in the industry of late, as automakers lean into offering a mix of ICE, hybrid, and all-electric models to meet consumers’ needs and weather a bumpy EV market.

“EV growth has been slow the first half of the year,” Elizabeth Krear, VP of JD Power’s EV practice, said in a statement in late June. “With more options at competitive affordability, it begs the question, ‘Why is the pace of EV sales flat and what is the satisfaction and future intent of current EV owners?’”

No one is more familiar with these market challenges than Tesla, which reported 443,956 EV deliveries globally in Q2. It marked the second consecutive quarter in which sales were down, but Wall Street was happy because the numbers surpassed expectations.

Wedbush Securities analysts wrote in a research note last week that “after a very choppy start to 2024…we believe the Tesla demand story has made a significant turn for the positive with stronger than expected Q2 deliveries.”

“The key for Tesla’s stock,” they wrote, “is the Street recognizing that Tesla is the most undervalued AI play in the market in our view with a historical Robotaxi Day ahead for Musk and Tesla on August 8 that will lay the yellow brick road to [full self-driving] and an autonomous future.”

Ford’s EV and hybrid sales leapt 61% and 56% YoY, respectively. Toyota’s Q2 EV and hybrid sales were up more than 63%, with electrified vehicles making up about 40% of overall sales. Hyundai Motor America reported 15% YoY growth in all-electric sales and a 42% YoY boost in hybrid sales.

Across the industry, Q2 sales were basically flat compared to a year ago, according to Cox Automotive data.

Keep up with the innovative tech transforming business

Tech Brew keeps business leaders up-to-date on the latest innovations, automation advances, policy shifts, and more, so they can make informed decisions about tech.