News
Ford, Hyundai report large declines in EV sales
Ford Mustang Mach-E EV vehicles at a Ford dealership in Los Angeles, California, US, on Thursday, Oct 16, 2025.
Kyle Grillot | Bloomberg | Getty Images
DETROIT — Sales of all-electric vehicles collapsed last month following the end of up to $7,500 in federal incentives for purchasing an EV, several automakers said Monday.
Ford Motor, Kia and Hyundai Motor reported massive declines in EV sales as many buyers pulled ahead purchases before the credits ended under changes by the Trump administration.
Ford, which ranked third in U.S. EV sales through the third quarter, reported a 25% drop in its year-over-year all-electric October sales. That included a 12% drop of its Mustang Mach-E crossover and a 17% fall for the F-150 Lightning.
Kia and Hyundai reported their top EV models dropped between 52% and 71% from a year earlier. The declines are notably greater when looking month-to-month, as September marked the end of a record quarter for EV sales in the U.S. ahead of the credits ending.
Some models, such as Hyundai’s Ioniq 5 and Ioniq 9 EVs, dropped by 80% and 71% from September to October, respectively, according to its reported sales. It was a similar story for similar vehicles at Kia, which is owned by Hyundai Motor but largely operates separately in the U.S.
“We saw strong EV demand leading up to the expiration of federal tax credits, and while that shift has temporarily disrupted the market, we’re confident it will reset,” Hyundai Motor North America CEO Randy Parker said in a release.
Meanwhile, sales of hybrid vehicles for carmakers are expected to continue to rise. Sales of such models for each of the automakers were bright spots in October, the companies said.
Only a limited number of automakers report monthly sales, rather than quarterly, but the results are an early indication of the expected fall in EV sales following the end of the federal incentives.
“With the credit now off the table, the market appears to be settling into a more natural rhythm,” Jessica Caldwell, head of insights for CarMax’s Edmunds, said in a Monday blog. “October marks the start of a reset period: one defined less by incentive-driven urgency and more by buyers motivated by genuine interest in EV ownership.”
Ahead of the EV incentives ending, several automotive executives such as Parker and Ford CEO Jim Farley predicted a massive drop off in EV sales.
Farley late last month said he “wouldn’t be surprised” if sales of EVs fell from a market share of around 5% after the end of the incentives from a level of 10% to 12% in September.
Tesla, at a 43.1% market share, and General Motors, at 13.8%, led the U.S. automotive industry this year in record domestic sales of all-electric vehicles through the third quarter, according to data provided to CNBC from Motor Intelligence.
Cox Automotive’s Kelley Blue Book estimates EV sales volume in the U.S. hit an all-time high in the third quarter, reaching 438,487 units sold. That marked a 40.7% jump from the previous quarter and an increase of 29.6% year over year.
