US Auto Sales Drop 5.5% in November as EV Market Share Falls to 5.1%
New light-vehicle sales fell for the second consecutive month in November 2025, with EV market share dropping to 5.1% following the expiry of the federal EV tax credit for most vehicles.
November 2025 new-vehicle sales fell 5.5% year-over-year in the United States, continuing a two-month decline as higher sticker prices and the expiration of the federal EV tax credit for most vehicles weighed on the market. The seasonally adjusted annual rate (SAAR) came in at 15.6 million units — still healthy historically, but down from the 16.4 million pace a year earlier.
Toyota and Kia were the notable exceptions, with Toyota posting a 4.4% gain and Kia climbing 2.7% — islands of growth in a softening market. Toyota Crown sales surged 85% year-over-year in November, suggesting that the brand’s push upmarket with electrified vehicles is resonating with buyers willing to pay more for substance. Most other brands declined, with Honda, General Motors, and Stellantis all posting single- to double-digit percentage drops.
EV Market Share Takes a Hit
Battery electric vehicles accounted for just 5.1% of new-vehicle sales in November, down from around 7.8% in the same period last year. The culprits are well-documented: the federal tax credit for most EVs expired mid-year when MSRP caps and income limitations disqualified most of the market, and no replacement policy has materialized. Without the $7,500 credit, the effective price gap between comparable EVs and ICE vehicles widened — and buyers noticed.
Tesla, which accounts for roughly half of all BEV sales, saw its US sales fall in line with the broader BEV segment in November. The Model Y remains the world’s best-selling vehicle by revenue, but competition has clearly intensified and the incentive environment has shifted.
What the Data Says
Analysts at Cox Automotive and J.D. Power both cited affordability as the primary headwind heading into 2026. Average transaction prices for new vehicles remain above $48,000, and loan rates — tied to the Federal Reserve’s policy rate — have kept monthly payments elevated. The NADA’s November Market Beat noted that the 15.6 million SAAR still puts 2025 on track to exceed 16 million total units for the year, but the Q4 softness suggests the market is losing momentum.
Hybrid vehicles continued to be a bright spot. Toyota’s hybrid lineup — including the RAV4 Hybrid, Camry Hybrid, and Highlander Hybrid — posted strong November numbers, with electrified vehicles representing 47% of Toyota’s full-year 2025 sales. The gap in the market is clear: buyers want electrified efficiency but can’t stomach the effective premium on a pure BEV right now.
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