Electric vehicle demand in the United States remained under pressure in February, as rising inventory and affordability concerns continued to weigh on the market, according to Cox Automotive’s latest EV Market Monitor.
EVs accounted for roughly 5.6 per cent of new-vehicle sales in the U.S. in February, holding a modest share but reflecting slower momentum compared with earlier growth periods.
The slowdown follows a sharp pullback earlier in the year. In January, new EV sales totalled about 66,276 units, down 29.9 per cent year over year and 20.4 per cent month over month, signalling a notable shift in demand after several years of rapid growth.
Cox Automotive said the market is showing signs of imbalance, with supply continuing to outpace demand. Elevated inventory levels are prompting automakers to adjust pricing and increase incentives in an effort to move vehicles, creating ongoing pressure on margins.
Affordability remains a key barrier for consumers, particularly as interest rates and overall vehicle prices remain high. Analysts note that higher monthly payments are making it more difficult for buyers to justify the upfront cost of new EVs, even as long-term operating costs remain lower.
At the same time, the used EV market is showing stronger performance, with improving sales and tighter supply. Lower price points are helping attract more buyers, signalling a shift in where demand is currently strongest.
Cox Automotive said the EV market is entering a more measured phase, where future growth will depend increasingly on pricing, incentives and product positioning.
