Predictions of a hot sales summer for EVs before federal incentives go away appear to be coming true.
Thanks to President Donald Trump’s tax and budget bill, the $7,500 tax credit on new EVs and a $4,000 tax credit for used EVs will soon sunset. Industry sales reports for July suggest that consumers are, in fact, rushing to get deals on EVs while they still can.
“The EV market is experiencing a sharp uptick in demand as consumers rush to take advantage of the $7,500 federal incentive before it expires Sept. 30,” Tyson Jominy, SVP of data and analytics at JD Power, said in a statement. “July marks the first month of this surge, with EVs projected to hit 10.9% retail share, up 1.9 percentage points from June. It’s also the first time this year that the segment has reached double digits.”
By the numbers: July was a largely upbeat month for the US new-vehicle market. Cox Automotive estimated 6.6% YoY sales growth, bolstered by strong fleet sales.
“July’s new-vehicle results—led by many of the industry’s biggest players—suggest the US consumer continues to hang in there while navigating uncertain economic conditions,” according to Cox analysts.
Kia reported 12% YoY sales growth and a 14% YoY increase in electrified vehicle sales in July.
The brand said in a news release that its new 2026 version of the EV9 had a “strong performance in July with 1,737 units sold,” up 90% from June, though the model’s sales were down slightly from July 2024. Sales of the electric EV6 were down 16.6% YoY. The Niro, which is available in electric and hybrid versions, posted 2.9% YoY sales growth.
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Hyundai reported its “best ever” July sales, according to a news release, with 15% YoY growth. The brand’s electrified vehicle sales jumped 50%.
Sales of the electric Ioniq 5 and Ioniq 6 were up 70% and 22%, respectively. Hyundai recently launched the Ioniq 9, which had 1,073 sales in July. Sales of the electric Kona were down 6% YoY.
American Honda reported “record” electrified vehicle sales in July, according to a news release, boosted in part by an 82.7% YoY sales jump for the electric Prologue.
Ford’s EV sales were essentially flat in July, dragged down by an 89% drop in sales of its E-Transit van, while its hybrid sales rose nearly 12% from last July. Overall, the automaker’s sales were up 9.3%.
Analysts have said that EVs could enjoy a temporary boost through the end of September before a likely fall-off.
“While the expiration of federal EV incentives will create longer-term headwinds for BEV growth, price-conscious consumers looking to take advantage of the savings are likely to do so before the end of the third quarter,” Chris Hopson, principal analyst at S&P Global Mobility, said in a statement.