Slumping EV sales dragged down new-vehicle market in November

EV sales are in free fall, and they’re dragging the rest of the new-vehicle market down with them.

As numerous automakers reported monthly results for November this week, industry analysts pointed to nagging affordability challenges and the decline in EV sales following the expiration of federal tax credits to explain why new-vehicle sales fell by as much as 8% from November 2024.

“November’s results reflect another notable—yet anticipated—decline in the new-vehicle sales pace, driven largely by the pull-ahead of EV purchases prior to the expiration of federal EV tax credits on Sept. 30,” Thomas King, JD Power’s president of OEM solutions, said in a statement.

“That expiration prompted many shoppers to accelerate buying decisions, resulting in a surge in EV sales that temporarily inflated the overall industry sales pace,” he added. “Now, two months after the credit expired, the industry continues to feel the effect of those accelerated purchases.”

By the numbers: Hyundai’s sales dropped 2% YoY, driven in part by lower EV sales. Hybrids bucked the trend, with Hyundai reporting its best-ever month for hybrids with a 42% YoY gain in the segment. Sales of Hyundai’s all-electric Ioniq 5 and Ioniq 6 dropped 59% and 56% YoY, respectively.

Sister brand Kia reported record November sales, up 3% YoY, despite lower EV sales. Sales of Kia’s all-electric models, the EV6 and EV9, dropped 68% and 57%, respectively.

“As consumer demand shifts, Kia’s diverse product lineup and growing hybrid portfolio has us on the verge of our third consecutive annual sales record,” Eric Watson, Kia America’s VP of sales operations, said in a statement.

Ford’s overall sales fell 0.9% YoY in November, with internal combustion engine vehicles growing 2.2% YoY, hybrids jumping 13.6%, and EVs slumping 60.8%.

American Honda’s November sales were down 15.3% YoY, which the brand attributed to a semiconductor shortage. Hybrid results were strong, but sales of Honda’s all-electric Prologue were down nearly 87%.

Post-tax credit era: Federal tax credits that offered consumers up to $7,500 off certain EV purchases sunsetted Sept. 30 as part of President Donald Trump’s tax and budget bill. After a record Q3 for the US EV market, new EV sales have been falling since the credits went away—and analysts predict more pain through the end of Q4 and well into 2026.

“The market continues to adjust to lower battery electric vehicle (BEV) volumes following the Q3 selloff, while ever-present new vehicle affordability concerns for consumers remain stubbornly sticky,” Chris Hopson, principal analyst at S&P Global Mobility, said in a statement. “Automakers are looking to end 2025 on a strong note, but momentum could be hard to find.”

Per JD Power and GlobalData figures, EVs made up 6% of the new-vehicle retail market last month—down from nearly 13% in September.

Tyson Jominy, SVP of OEM customer success at JD Power, said in a statement that average transaction prices for EVs jumped $6,500 from the same time last year to $52,400, higher than both ICE vehicles and hybrids. EVs, however, continue to command the highest incentives of any type of vehicle.

“Leasing remains a critical lever for EV adoption, with 54% of EV transactions occurring through leases, far outpacing ICE vehicles at 20% and hybrids at 15%. While EV incentive spending has moderated compared to a year ago, the reliance on leasing and discounts underscores the challenges automakers face,” Jominy said.

“As the market adjusts to life without federal tax credits,” he added, “manufacturers will need to rethink go-to-market strategies to balance affordability, profitability, and consumer demand in this new paradigm.”