As the summer heat sets in, the US EV market appears to be cooling off.
Cox Automotive analysts estimated that Q2 EV sales fell 6% YoY, and S&P Global Mobility cited “stalled conditions for BEV demand” in its projection that battery-electric vehicle sales would make up about 7% of the new-vehicle market in June—down from over 8% in January. Meanwhile, numerous major automakers, including US EV market leader Tesla, reported YoY EV sales declines in Q2.
The EV market is likely poised for even more turbulence in the coming months, now that President Donald Trump has signed into law the “Big Beautiful Bill” that will axe the $7,500 federal tax credit for EV purchases beginning Sept. 30.
Meanwhile, the new-vehicle market showed signs of slowing in June after a spring tariff-driven buying frenzy. And analysts have warned of a further decline in the second half of the year, attributed, in part, to tariffs.
“Automakers and consumer[s] alike continue to digest an uneasy and uncertain environment,” Chris Hopson, principal analyst at S&P Global Mobility, said in a statement.
By the numbers: Tesla was a drag on the EV market’s overall results, as the EV maker saw its global deliveries fall 13.5% YoY, even with its attempts to pivot to robotaxis as one potential growth area.
General Motors reported 7% YoY sales growth in Q2. The No. 1 US automaker’s EV sales rose more than 100%, and Chevrolet “became the best-selling EV brand,” according to a company press release.
Ford posted a 14.2% YoY sales gain in Q2. The automaker reported that its electrified vehicle sales rose 6.6% in Q2 and made up 13.5% of its overall sales mix. Hybrid sales rose 23.5% YoY, driving the gains, while EV sales fell 31.4%.
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Toyota Motor North America’s sales were up 7.2% YoY in Q2. The automaker reported that its electrified vehicle sales were up nearly 30% on a volume basis and made up nearly half of its sales volume.
“Steady demand for our Toyota and Lexus brands resulted in strong sales throughout the second quarter,” Mark Templin, EVP and chief operating officer of TMNA, said in a statement. “Our lineup of 32 electrified vehicles was a big part of that draw as they represented over 46% of our sales in June.”
American Honda’s Q2 sales rose 8.2% YoY. The Honda brand reported record electrified vehicle sales thanks to strong sales of hybrid versions of the CR-V, Accord, and Civic, and of the Prologue EV, per a news release.
Sister brands Hyundai and Kia reported their best-ever first-half results, bolstered by strong hybrid sales, but both brands’ EV sales were down.
Mercedes-Benz’s quarterly results were impacted by tariffs, The Wall Street Journal reported, with the German automaker’s global sales falling 9% YoY and its US sales dropping 12%. Mercedes-Benz’s EV sales fell 24%.
“One of the most pressing headwinds is policy uncertainty,” Stephanie Valdez Streaty, Cox Automotive’s director of industry insights, said during a recent presentation. The “looming expiration” of many of the Inflation Reduction Act’s EV incentives, she added, “could dampen consumer enthusiasm and slow the pace of adoption, especially among price-sensitive buyers.”