Automotive Services and Tech Company Sheds Light on Electric Vehicle Trends
In a world where the buzz around electric vehicles (EVs) continues to grow louder, a recent report by Cox Automotive, a U.S.-based automotive services and technology company, has revealed some fascinating insights into the current and future landscape of the EV market in North America.
Key Findings from Cox Automotive’s Report
The report, which delves into the 2025 outlook for the automotive industry, paints a promising picture for the EV sector. According to Cox Automotive’s data, new-vehicle sales in 2024 reached approximately 16 million in the U.S., marking a 2% increase over the previous year. This surge in sales made 2024 the best year for new-vehicle sales since the onset of the pandemic, signaling a significant shift towards electrification in the consumer vehicle segment.
Jonathan Smoke, the chief economist at Cox Automotive, expressed optimism about the year ahead, citing accelerating economic momentum, reduced tax policy uncertainty post the November presidential election, and a consequent increase in consumer and auto dealer sentiment as key drivers of growth in 2025. The company predicts that 2025 will witness the third consecutive year of sales growth, with new vehicle sales projected to surpass the levels seen in 2019, a pre-pandemic peak. Additionally, used vehicle sales are expected to reach their highest point since 2021, which was a record-breaking year for the sector.
The Rise of Electrified Vehicles
One of the most striking revelations from Cox Automotive’s report is the surge in demand for electrified vehicles. The company forecasts that 25% of vehicles sold in 2025 will be electrified, marking a significant increase from the current 7.5% market share. This shift is expected to propel EVs to a 10% share of the overall market, while hybrids and plug-in vehicles will capture a 15% market share. In contrast, internal combustion engine (ICE) vehicles are predicted to see a decline, dropping to a 75% market share – the lowest on record.
Enhancing Customer Satisfaction with EVs
Furthermore, Cox’s Car Buyer Journey Study highlighted the growing satisfaction among EV buyers during the car-buying process. The study, which surveyed 2,300 consumers, revealed that 82% of EV buyers reported being “highly satisfied” with their overall vehicle-buying experience, compared to 75% of new ICE buyers. One of the key factors driving this satisfaction is the widespread use of digital tools during the purchasing process, offering customers greater clarity on inventory options, financing, and additional features.
As the automotive industry continues to embrace the technological and environmental benefits of transportation electrification, the shift towards EVs appears to be gaining momentum. With EVs emerging as frontrunners in the market, the future looks electrifying for both consumers and the automotive industry alike.