According to a new report from Cox Automotive, 2025 will be the strongest year 

for the automotive industry since the COVID-19 pandemic.

The company is optimistic about the prospects for the automotive industry in 2025. 

"With 2024 coming to a successful end, Cox Automotive is optimistic about 2025 

and has every reason to believe that it will be the best year since 2019," said Chief 

Economist Jonathan Smoke.

2,557 American car buyers and 526 dealers participated in this latest nationally 

representative study. The purpose is simple: to better understand the attitudes, 

preferences and views of these dealers and consumers on electric vehicle options.

Cox Automotive's 2025 forecast is good news for the electric vehicle industry

Cox Enterprises is one of the world's largest automotive service and technology 

providers. Specifically, they provide "digital marketing and software for automotive 

dealers and consumers, as well as automotive remarketing services." Kelley Blue Book, 

AutoTrader, Dealer-Auction Ltd, vAuto and Dealer.com are all brands of Cox Automotive.

The report is aptly titled: "Cox Automotive's Path to Electric Vehicle Adoption in 2024." 

To ensure that the survey results properly reflect the diverse makeup of the U.S. customer 

base, the survey was designed to collect a wide range of demographic information, 

such as age, income, location and current vehicle ownership.

Let's first look at the situation in 2024. Overall, with the exception of Steyr and Tesla, almost 

all automakers have better sales in 2024 than the previous year. General Motors is the 

best-selling automaker in 2024, and Honda and Mazda also have significant growth.

According to Kelley Blue Book, U.S. electric vehicle sales have exceeded 1 million for the 

first time. Looking at the used electric vehicle market, the proportion of people considering 

buying a used electric vehicle has increased sharply, from 62% in 2021 to 77% today.

Almost all automakers see sales growth in 2024 compared to the previous year, with the 

exception of Stellantis and Tesla

Cox believes that EVs will increase their market share to about 10% in 2025, up from about 

7.5% in 2024. Coincidentally, sales of internal combustion engine vehicles will fall to 75% of 

the total, a record low, with EVs and plug-in hybrids expected to account for about 15% of 

the market.

This year, about 15 new EV models are expected to hit the market, and most buyers are 

expected to buy these cars before the Trump administration cuts the $7,500 tax credit. 

The rapid expansion of EV charging networks is also helping this growth.

The lack of an adequate charging network is seen as one of the main barriers to EV adoption. 

This issue will also ease in 2025, as 86% of dealers have pledged to continue investing in 

EV charging infrastructure.

While affordability remains a major barrier to EVs, this issue will also improve in 2025. Cox 

expects yield spreads to narrow and loan portfolio performance to improve, meaning that 

credit supply will continue to grow.

86% of dealers commit to continued investment in EV charging infrastructure

Furthermore, assuming the economy stabilizes as expected and loan performance improves, 

loan rates could fall further without any additional Fed action, suggesting that Fed policy 

could be less important in 2025 than in previous years.

Electric vehicles appear set to become more widespread, and in a world where most news 

about EV adoption is negative, this study is a bright ray of hope.