Despite the growth of alternative fuel vehicles, ICE vehicles still accounted for nearly 13 million sales in 2024, although their market share has decreased from 84% in 2023 to 80.8% in 2024.

As of February 2025, the market share for ICE vehicles further declined to 78.6%, down from 91.8% in 2021, highlighting a gradual but steady transition in the automotive landscape.

In 2024, combined sales of electric vehicles (EVs), hybrids, and plug-in hybrids (PHEVs) surpassed 3 million units, capturing 19.2% of the automotive market, with projections suggesting this could rise to 25% within the next two years.

This surge in EV and hybrid sales indicates a significant shift in consumer preferences towards more environmentally friendly transportation options, even as internal combustion engine (ICE) vehicles continue to dominate the market.

The hybrid market has also seen substantial growth, with its share rising to 11.7% as of February 2025, a significant increase from just 1.8% in 2015.

Plug-in hybrid sales contributed to this growth, with 288,126 units sold in 2024, maintaining a market share of 1.8%.

However, the growth of EV sales may face challenges in 2025 due to rising vehicle prices and potential rollbacks of federal incentives that could impact consumer purchasing decisions.

Electric vehicle sales in the U.S. reached a record 1.2 million in 2024, marking a notable increase from previous years.