Ford and Hyundai announced a significant decline in electric vehicle sales

DETROIT — Sales of all-electric vehicles collapsed last month after federal incentives of up to $7,500 to purchase an electric vehicle expired, several automakers said Monday.

ford motorAnd Kia and Hyundai Motor and toyota motor It reported massive declines in electric vehicle sales as many buyers pulled purchases before credits expired under changes made by the Trump administration.

Ford, which ranked third in U.S. electric vehicle sales during the third quarter, reported a 25% decline in its all-electric sales in October year-over-year. This included a 12% reduction in the Mustang Mach-E crossover and a 17% reduction in the F-150 Lightning.

Toyota reported that it sold 18 units of its only fully electric car, called the BZ, in October. This was down from 1,401 units a year earlier and 61 vehicles the previous month.

Kia and Hyundai reported that their top EV models were down between 52% and 71% compared to the previous year. The declines are noticeably larger when looking month-to-month, with September seeing the end of a record quarter for US electric vehicle sales before credits expire.

Some models, such as the Hyundai Ioniq 5 and Ioniq 9 EVs, fell 80% and 71% from September to October, respectively, according to their reported sales. The story was similar for similar vehicles at Kia, which is owned by Hyundai Motor but operates largely separately in the United States.

“Although the end of the federal tax credit impacted electric vehicle sales in October, we continue to see strong demand that has driven this change, and we remain confident that the market will reset,” Randy Parker, CEO of Hyundai Motor North America, told CNBC during an interview on Monday.

Meanwhile, hybrid car sales to automakers are expected to continue to rise. The companies said that sales of these models for each automaker were bright spots in October.

Parker said Hyundai hybrid sales rose 41% last month compared to October 2024, causing total sales of “electric” vehicles, which includes electric vehicles, to rise by 8%.

Only a limited number of automakers report monthly sales, not quarterly, but the results are an early indicator of the expected decline in electric vehicle sales after federal stimulus expires.

“With credit now off the table, the market appears to be settling into a more normal rhythm,” said Jessica Caldwell, head of insights at the bank. Car Max Edmonds said in a blog on Monday. “October marks the beginning of a reset period: one defined less by incentive-driven urgency and more by buyers motivated by genuine interest in electric vehicle ownership.”

Before EV incentives ended, many auto executives like Parker and Ford CEO Jim Farley predicted a significant decline in EV sales.

Farley said late last month that he “wouldn’t be surprised” if EV sales fell to about 5% market share after incentives expire from the 10% to 12% level in September.

TeslaWith a market share of 43.1% GMat 13.8%, led the U.S. auto industry this year in record domestic sales of all-electric vehicles during the third quarter, according to data provided to CNBC by Motor Intelligence.

Cox Automotive’s Kelley Blue Book estimates that U.S. electric vehicle sales volume reached an all-time high in the third quarter, reaching 438,487 units sold. This represents a jump of 40.7% from the previous quarter and an increase of 29.6% year over year.

Clarification: This article has been updated to clarify the description of Farley’s statements.