Record EV Sales Drive GM,Ford to Q3 U.S. Auto Sales Gains
DETROIT – Strong electric vehicle sales propelled General Motors and Ford to increases in third-quarter U.S. auto sales, even as industry executives anticipate a potential drop in EV demand following the expiration of federal tax incentives. Cox Automotive forecasts total U.S. vehicle sales rose between 4% and 7% for the quarter, aided by EV and plug-in hybrid sales.
The surge in EV adoption contributed to a record 10% market share for electric vehicles during the third quarter, with approximately 410,000 EVs sold – a 21% increase year-over-year. This represents the highest quarterly volume of EV sales ever recorded in the U.S. Though, Ford CEO Jim Farley cautioned that EV sales could fall to 5% market share in October after the federal incentive program concluded. The incentives expired due to changes enacted in the “One Big Beautiful Bill Act.”
To mitigate the impact of the expiring tax credits, several automakers are implementing strategies to maintain sales momentum. Hyundai announced Wednesday it is reducing pricing on its 2026 Ioniq 5 EV by up to $9,800 and offering a $7,500 cash incentive on 2025 models, effectively matching the previous federal credit. “We’re very bullish when it comes to EV sales in the marketplace,” said Randy parker, CEO of Hyundai Motor America. “There’s going to be a little bit of a reset in October, probably even November, but the EV market will settle, and at that point, we view this as an opportunity. … We’re not backing off.”
GM and Ford are also extending the benefit of the $7,500 U.S. tax credit on EV leases through programs initiated with their retail networks, where the automakers’ financing arms are making down payments on EVs in dealer inventory.
