[ECO]ICE Sales Decline as Electrified Cars Gain Market Share

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Sales of 100% fossil-fueled cars are (finally) declining in the US.

The sales of Internal Combustion Engine vehicles in the US are declining. This is a reflection of a broader shift toward electrified transportation, as highlighted by recent data from the Alliance for Automotive Innovation. 

In the first half of 2024, ICE vehicle market share fell by 2.3%, marking the largest decrease among all vehicle categories. While gasoline- and diesel-powered cars still hold a majority of the market share, they are increasingly facing competition from hybrid, plug-in hybrid, and fully electric vehicles.

According to

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quarterly U.S. EV sales report, sales of gasoline-powered cars dropped 14% in the second quarter of 2024 compared to the same ******* in 2019. This continuing decline reflects the growing availability of electrified alternatives and shifting consumer preferences. 

The ICE sales decline is now a defining feature of the automotive industry, signaling a new era in transportation.

In the second quarter of 2024, approximately 386,000 electrified vehicles—comprising battery-electric, plug-in hybrid, and fuel-cell models—were sold in the U.S., accounting for nearly 10% of the light-duty vehicle market. This represented a 0.6 percentage point increase from the previous quarter, surpassing the previous peak in Q3 2023 by 8,300 units.

However, the continued rise in

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is heavily dependent on the expansion of charging infrastructure. As more consumers switch from fossil-fueled vehicles to EVs, the demand for easily accessible, fast-charging stations has grown significantly. 

The U.S. Department of Energy reported a 30% increase in publicly available charging stations in 2023, reaching over 140,000 locations nationwide. While this expansion is promising, gaps in coverage, particularly in rural areas, persist. 

Many potential EV owners remain hesitant, citing range anxiety as a key concern, highlighting the need for further investment in charging infrastructure to maintain the momentum of the ICE sales decline.

Cumulative sales data for the first half of 2024 confirms the ongoing market shift. More than 730,000 electrified vehicles were sold, representing 9.7% of total light-duty vehicle sales—an increase of 0.81 percentage points compared to the first half of 2023. 

Meanwhile, overall light-duty vehicle sales rose by 1.4% year-over-year, despite the continued ICE sales decline.

Consumers are increasingly weighing long-term costs when choosing between ICE and electrified vehicles. While EVs and hybrids often have higher upfront costs, they offer savings on fuel and maintenance over time. 

EV owners benefit from the elimination of gas station visits and lower maintenance costs due to simpler drivetrains and fewer mechanical components. These long-term savings make EVs and hybrids appealing alternatives to traditional ICE vehicles.

Environmental considerations also play an increasingly significant role in purchasing decisions. EVs produce zero tailpipe emissions, while hybrids reduce fuel consumption and emissions compared to gasoline-powered cars. 

According to the International Council on Clean Transportation, EVs produce up to 70% fewer

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over their lifetime than ICE vehicles. With growing concerns over climate change, these environmental benefits are accelerating the shift away from ICE vehicles.

Over the past eight and a half years, the ICE sales decline translates into a loss of 19.1 percentage points of market share. The largest gains have been made by traditional hybrids (+10.3%), followed by battery-electric vehicles (+7.1%) and plug-in hybrids (+1.7%). Many analysts view hybrids as a bridge to full electrification, helping ease consumers into more sustainable forms of transportation.

For example, Toyota’s 2024 Camry lineup is now exclusively hybrid. This decision reflects the growing demand for fuel-efficient vehicles and automakers’ broader strategic shift toward electrification. 

While some critics argue that automakers are limiting consumer choices by pushing hybrids, the data suggests that many buyers are embracing these changes. The continued ICE sales decline highlights the

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, where hybrids serve as an intermediary step toward full electrification.

While ICE market share continues to decrease, the pace of this decline has slowed compared to the more rapid shifts seen during the pandemic. Analysts suggest this slowdown may be due to market saturation among early adopters of EVs. 

Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, noted that the transition to EVs will be gradual. “As we move to less tech-savvy buyers, EV market share growth is likely to slow in the next few years,” Fiorani said.

The adoption of EVs faces several hurdles, including affordability, range anxiety, and insufficient infrastructure. However, the growing expansion of charging networks, cost-saving incentives, and increasing environmental awareness suggest that the trend of ICE sales declining will continue in the long term. To sustain this momentum, manufacturers and policymakers must address these challenges effectively.

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