The era of internal combustion engine (ICE) vehicle dominance may be coming to an end.
According to a new report from the Alliance for Automotive Innovation, ICE vehicles saw the biggest market share loss of any vehicle category in the first half of 2024, dropping by 2.3%. While ICE vehicles still make up a majority of new car sales, that dominance is being chipped away as consumers increasingly buy hybrids, plug-in hybrid electric vehicles (PHEVs), and EVs over traditional gas—and diesel-powered cars.
ICE vehicles fading, but far from gone
Less than 10 years ago, ICE vehicle sales made up virtually the entire U.S. car market — some 97% in 2016. But that long-standing reality has quickly changed with alternatively-powered vehicles on track to take a quarter of all new car sales in the next few years.
This year, ICE vehicles made up 78% of new car sales, down about 18% since before the pandemic. In that time, Hybrids, EVs, and PHEVs have all seen significant growth in the U.S. thanks to expanded manufacturer offerings and generous federal and state credits.
View the original article to see embedded media.
Although the ICE market share has continued to retreat in 2024, the speed of that decline has slowed compared to pandemic-era years. So, while consumers continue to switch to ICE alternatives, that transition won’t always happen at the same speed from year to year.
“The market was never going to make a smooth transition to EVs, and we expected a slowdown in this shift as early adopters were satisfied,” said Sam Fiorani , vice president of global vehicle forecasting at AutoForecast Solutions. “Moving on to less tech-savvy buyers will slow the EV market share growth over the next few years.”
Born to drive ICE, forced to buy hybrids
A sentiment we’ve seen floating around our comment sections (yes, we do read them) hits on this idea that some consumers don’t actually want to buy hybrids or EVs but are practically forced to as manufacturers continue to electrify their lineups.
Related: 2024 Lucid Air available from $550/mo with lease deal — A detailed breakdown
Take Toyota, for example. The company’s total U.S. sales are up 5.5% so far this year, but its EV and hybrid vehicle sales are up 58%. So, what explains the gap? One thought is that people genuinely like the benefits that EVs and hybrids offer. Another explanation is that Toyota simply doesn’t sell as many ICE models now, which will inherently limit the number that can be sold.
For instance, the newest models of the Toyota Camry, one of the best-selling cars in the United States, are only offered as hybrids. From the perspective of our more impassioned readers, this fact equates to Toyota practically forcing you to buy a hybrid. And that’s certainly . . . a way to look at it. For us, it just means the Honda Accord might be a better option for more battery-averse buyers.
Final thoughts
Whether the shift away from ICE vehicles is coming from the bottom up — i.e., consumer demands — or the top down — i.e., manufacturer offerings — the trend is clear: peak ICE is behind us.
While EV growth has slowed, it doesn’t change the reality that ICE vehicles are gradually losing favor. As hybrids continue to gain popularity and EV technology advances, the traditional gas-powered car may soon find itself taking a backseat in the automotive market.
Related: EV demand crumbles — what’s pushing buyers back to hybrids?
Local News
