Electric Vehicle Sales Poised for Growth as Prices Drop and Options Expand

Despite a sluggish start, electric vehicle (EV) sales are set to gain momentum, driven by falling prices, growing incentives, and a surge in model variety, according to recent industry forecasts. Cox Automotive and J.D. Power highlight a dynamic shift in the EV market, offering hope for enthusiasts and prospective buyers.

Current Sales Trends Signal a Pivot

EV sales have faced headwinds, with Cox Automotive revising its 2025 forecast from a 10% share of new vehicle sales to 9%.

“At the start of the year, we forecasted EVs would reach a 10% share of new vehicle sales by year end. But based on current trends, we now expect that number to land closer to 9%,” said Stephanie Valdez Streaty, director of industry insights at Cox Automotive, according to Forbes.

The firm predicts a 6% drop in Q2 EV sales compared to last year. Meanwhile, J.D. Power reports hybrids outperforming EVs, capturing a 14.1% retail share in June, up 3.8 points from 2024, while EV share fell 1.9 points.

“Hybrids are making waves again, setting a monthly record for June,” wrote Tyson Jominy, senior vice president of data and analytics at J.D. Power.

Falling Prices and Rising Incentives

Affordability is improving, a key factor for EV adoption. In May, the average transaction price (ATP) for EVs dropped to $57,734, down 2.3% from April and 1.1% from May 2024, per Cox data. Incentives also hit a record 14.2% of ATP.

“This downward trend highlights growing competition and pricing pressure across the EV segment,” Streaty reportedly noted.

Tesla, the market leader, saw its ATP fall to $55,277 after a 15.2% sales decline in the first half of 2025, reflecting aggressive discounting to maintain competitiveness.

Expanding Model Choices Reshape the Market

The EV landscape is diversifying rapidly. From just 17 models in 2020, buyers now have 75 options, with luxury models rising from 7 to 39 and non-luxury from 10 to 36.

“EVs now are available across nearly every major vehicle segment. SUVs have seen the most dramatic expansion, and for the first time, trucks and vans are meaningfully represented,” Streaty said.

General Motors is gaining ground with strong performances from Chevrolet, GMC, and Cadillac, while new entrants like Honda, Jeep, and Dodge are carving out market share. This influx of body styles and price points caters to diverse consumer needs, from compact SUVs to electric trucks.

Used EV Market Set to Surge

The used EV market is also on the cusp of transformation. Cox estimates that one million EVs leased since 2022 will return to the market by 2027, boosting availability.

“EV lease maturities will comprise 16% of all volume, with plug-in hybrids being another 5%,” said Jeremy Robb, senior director of economic and industry insights at Cox.

Used EVs are priced about $2,000 below comparable internal combustion engine vehicles, making them an attractive option for budget-conscious buyers.

What This Means for EV Enthusiasts

The evolving EV market offers significant opportunities. Lower prices and higher incentives make ownership more accessible, while the expanded model range ensures options for every lifestyle, from urban commuters to off-road adventurers. The incoming wave of used EVs will further democratize access, offering near-new vehicles at reduced costs. For enthusiasts, the rise of non-Tesla brands signals a competitive market with innovative designs and features.

As Streaty concluded, “More consumers than ever can now find an EV that fits their lifestyle budget and brand preference.”