EV sales fall again in Colorado, but those of plug-ins rise

Sales of EVs may rise this summer before the end of federal tax credits

Colorado led the nation in sales of battery electric vehicles in the fourth quarter of 2024. That was the first time Colorado bested California — and it was no doubt largely a result of handsome tax credits offered in Colorado through December. Total sales exceeded 25% of all new car sales.

Then, in the first quarter of 2025, they declined to 20.1%. In the second quarter, they declined further to 18.6%, the Colorado Automobile Dealers Association reported yesterday.

However, EV sales for the first six months of 2025 outpaced those of 2024.

Also of note: sales of hybrids, as distinct from battery EVs, continued to rise, hitting 36% in the first half of this year, easily outpacing the overall market, reported the auto dealers. Hybrids achieved 13.3% of all sales in the first half of the year.

What will the figures look like in October for the July-September quarter?

Travis Madsen, from the Southwest Energy Efficiency Project, expects higher sales percentages for battery electric vehicles as buyers take advantage of federal tax credits before they expire at the end of September.

The loss of federal tax credits will slow sales in the shot term but the superiority of the technology will remain, said Madsen from California, where he was in a conference devoted to electrified transportation that was attended by academics, advocates, automakers, and regulators.

“It seems pretty clear that people think electrification is a foregone conclusion,” he said. “It’s a matter of how long.”

In Colorado, conversations will continue about whether legislators in the next session can create tools to spur sales, he said.