Record EV sales lead GM, Ford to 8% increases in Q3 U.S. auto sales

DETROIT – Strong electric vehicle sales are leading to robust third-quarter results for major automakers, as consumers flocked to car dealerships before the end of $7,500 in federal incentives for EVs.

Ford Motor, General Motors and Hyundai all reported record quarterly sales of all-electric vehicles from July through September.

Both GM and Ford said third-quarter sales overall increased roughly 8% from a year earlier, with EV sales more than doubling for GM. Ford said sales of its EVs increased by 30% compared with the third quarter of 2024.

Hyundai reported its namesake brand recorded a 13% year-over-year sales increase during the third quarter, also led by doubling sales of all-electric vehicles.

Japan’s largest carmakers that don’t offer many EVs reported varying results for the quarter. Toyota Motor — the world’s largest automaker — said its quarterly sales increased 16%, while Honda Motor’s sales fell 2% from a year earlier. Nissan Motor reported an increase of 5.3%.

GM said it remained the top automaker in U.S. sales through the third quarter of this year, with the Detroit company estimating a market share of 17.2% – its highest position since 2015.

“No one is in a stronger position for a changing U.S. market than GM. We have the best lineup of ICE and EV vehicles we’ve ever had, and our brands have grown market share with consistently strong pricing, low incentives and inventory,” GM North American President Duncan Aldred said in a release.

GM on Wednesday estimated the industrywide sales pace for the third quarter was 16.7 million to 16.9 million units — higher than some earlier industry estimates, led by gains in EVs.

U.S. EV sales during the third quarter are expected to be a record, as buyers pulled ahead plans to purchase a new zero-emissions vehicle ahead federal EV incentives of up to $7,500 ending in September.

Ford CEO Jim Farley on Tuesday said he “wouldn’t be surprised” if sales of EVs fell from an industry market share of around 10% to 12% this month — which is expected to be a record — to 5% after the incentive program ends.

Cox Automotive forecasts sales of EVs hit 410,000 during the third quarter, up 21% from a year earlier. That would easily be the highest amount of EVs ever sold in a quarter in the U.S., as well as a record 10% market share.

Sales of EVs as well as plug-in hybrid electric vehicles that also qualified for federal incentives are expected to assist in boosting third-quarter vehicle sales up between 4% and 7%, according to forecasts from Cox and CarMax’s Edmunds.

Some automakers are trying to keep their EV sales momentum going after the end of the tax credit. The incentives expired as part of the Trump administration’s “One Big Beautiful Bill Act,” which stripped the old enticement but included some perks for buying a U.S.-assembled vehicle, regardless of it being an EV.

Hyundai on Wednesday said it is reducing pricing for its 2026 Ioniq 5 EV by up to $9,800 and offering a $7,500 cash incentive on 2025 models, matching the federal credits.

“We’re very bullish when it comes to EV sales in the marketplace,” said Randy Parker, CEO of Hyundai Motor America, adding the brand is evaluating pricing on other models as well. “There’s going to be a little bit of a reset in October, probably even November, but the EV market will settle, and at that point, we view this as an opportunity. … We’re not backing off.”

GM and Ford also essentially extended the use of a $7,500 U.S. tax credit on leases of electric vehicles, Reuters reported Monday, by rolling out programs to their retailers under which the automakers’ financing arm would initiate the purchase of EVs in dealers’ inventory by making down payments on them.