Molly Ayala
Electric vehicles (EVs) are becoming increasingly popular, with a record 1.2 million sold in the US in 2023, according to Kelley Blue Book. This accounted for 7.6% of the total US vehicle market, up from 5.9% in 2022. In the first quarter of 2024, this figure rose to 7.9% of all new car registrations. In the second half of 2023, combined sales of hybrid vehicles, plug-in hybrids, and battery electric vehicles (BEVs) reached their highest share of total light-duty vehicle sales at 17.9%. While EVs are still rare in most parts of the US, their numbers are predicted to grow.
| Characteristics | Values |
|---|---|
| Percentage of electric vehicles sold in the US in 2023 | 7.6% |
| Number of electric vehicles sold in the US in 2023 | 1.2 million |
| Percentage of electric vehicles sold in the US in May 2024 | 6.8% |
| Number of electric vehicles sold in the US in the first quarter of 2024 | 39.3% were Tesla Model Y |
| Number of electric vehicles sold in the US in the first quarter of 2022 | 114,000 were Tesla |
| Percentage of electric vehicles sold in the US in 2021 | 3% |
| Number of electric vehicles sold in the US in 2021 | 1.4 million |
| Percentage of electric vehicles sold in the US in 2020 | 5% |
| Percentage of electric vehicles sold in the US in 2019 | 1% |
| Number of electric vehicles sold in the US in 2019 | 328,118 |
| Percentage of electric vehicles sold in the US in Q4 2024 | 8.7% |
| Percentage of electric vehicles sold in the US in 2023 (including hybrids) | 16.3% |
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What You'll Learn
Electric vehicles and hybrids comprised 16.3% of US light-duty vehicle sales in 2023
Electric vehicles (EVs) and hybrids have been steadily gaining popularity in the United States, and this trend continued in 2023. According to data from Wards Intelligence, electric vehicles and hybrids comprised 16.3% of US light-duty vehicle sales in 2023, surpassing the previous year's figure of 12.9%. This increase in sales can be attributed to several factors, including a wider range of BEV model options, the introduction of hybrid vehicles in more popular size classes, and most notably, a decline in BEV prices.
The average transaction price for BEVs fell to $50,798 in December 2023, 24.2% lower than the peak in the second quarter of 2022. This price decline was influenced by Tesla's price cuts, with the average transaction price for Tesla vehicles dropping by 29.0% between June 2022 and December 2023. Additionally, manufacturer price cuts and incentives like the Clean Vehicle Credit and Qualified Commercial Vehicle Credit from the Inflation Reduction Act also contributed to making BEVs more affordable for buyers.
While the growth in EV sales is promising, it is important to note that they still represent a small portion of the total vehicle market in the US. In 2023, the EV share of the total US vehicle market was estimated to be around 7.6%, up from 5.9% in 2022. This slow shift towards electrification is also reflected in the number of EVs on US roads, with less than 1% of the 250 million vehicles, SUVs, and light-duty trucks being electric as of 2023.
Despite the challenges, the momentum for EVs is expected to continue. The US has set a goal of reaching 50% electric vehicle sales by 2030, and automakers are rapidly launching electrified lineups. Tesla, the market leader, saw its US EV market share fall to 44% in Q4 2024, with General Motors and Ford closing in. With more manufacturers entering the EV space and the increasing availability of charging infrastructure, the shift towards electrification is expected to gain further momentum in the coming years.
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In 2024, 6.8% of new vehicles sold in the US were electric
Electric vehicles (EVs) are becoming an increasingly common sight on US roads. In May 2024, 6.8% of new vehicles sold in the US were electric. This figure represents an improvement of 1.6 percentage points from 2022. However, it's worth noting that this percentage does not include plug-in hybrid vehicles (PHEVs), which are considered separately and made up 1.7% of the market in May 2024. When combined, EVs and PHEVs accounted for 8.5% of the vehicles sold in that month. Nevertheless, this is still a small proportion compared to the 82.4% of gas-powered vehicles sold in the same period.
While the EV market share is still relatively small, it has been growing steadily. In 2023, an estimated 1.2 million EVs were sold in the US, according to Kelley Blue Book, a Cox Automotive company. This represented 7.6% of the total US vehicle market, up from 5.9% in 2022. The fourth quarter of 2023 set a record for both volume and share, with 317,168 EVs sold, making up 8.1% of the market. This growth continued into 2024, with the first quarter seeing 7.9% of all new car registrations being for electric vehicles, according to Experian.
The increase in EV sales can be attributed to several factors. Firstly, there has been a rise in the number of charging and plug-in power stations, making long-distance travel easier for EV owners. Secondly, the price difference between EVs and conventional vehicles is narrowing, with the average transaction price for BEVs falling to $50,798 in December 2023. This is partly due to price cuts by manufacturers and the introduction of incentives such as tax credits and rebates. Additionally, the number of BEV model options has increased, with manufacturers adding 20 new BEV models in 2023, offering more variety to consumers.
Despite the growth in EV sales, there are still some challenges to wider adoption. One issue is the high cost of EVs, with the average price of a new EV remaining above $50,000. This has led to criticism of purchase incentives, such as tax credits, as mainly benefiting buyers who can already afford expensive electric cars. According to one source, approximately two-thirds of electric or plug-in hybrid car owners earn more than $100,000. Another challenge is the slow pace of change in the automobile industry, with new models and technologies taking time to gain traction.
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In 2023, 12.5% of BMW sales were EVs
In 2023, BMW Group sales reached a new all-time high of 2,555,341 units, a 6.5% increase. Of these sales, 15% were battery-electric vehicles (BEVs), with growth across all sales regions worldwide. This translates to 330,596 BEV units delivered to customers. In 2023, 12.5% of BMW sales were electric vehicles (EVs).
BMW's fully electric models, including the BMW iX1 and the BMW i4, were among the main sales drivers. The BMW Group now has a fully electric option in each of its main segments, with the launch of the fully-electric BMW i5 and the addition of the BMW iX2 to its lineup. The company plans to continue laying a strong foundation for dynamic BEV growth in the coming years, with one in every five newly delivered vehicles having a fully electric drive train in 2024, and one in four by 2025.
In the US, a total of 395,741 BMW and Mini vehicles were delivered to customers in 2023, a 9.4% increase. In Europe, sales of BMW and Mini vehicles totalled 942,805 units, a 7.5% increase. Overall, the BMW brand posted a 7.3% increase in sales from the previous year, with a total of 2,253,835 vehicles delivered worldwide.
While BMW's EV sales are impressive, it is worth noting that EVs still make up a small percentage of total vehicle sales in the US. In 2023, the EV share of the total US vehicle market was 7.6%, according to Kelley Blue Book estimates, up from 5.9% in 2022. However, this percentage varies by state, with California and Washington, DC, having the highest percentage share of EVs in 2023, at 19.6% and 18.8%, respectively.
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In 2023, 11% of Audi sales were EVs
In 2023, Audi delivered approximately 1.9 million vehicles worldwide, with more than 178,000 of those being fully electric, accounting for about 11% of the brand's total sales volume. This represented a 51% increase in Audi's all-electric car sales compared to 2022, when electric vehicles accounted for 7.3% of its total sales. Audi's two most popular all-electric model families are the Q4 e-tron and Q8 e-tron, with the MEB-based Audi Q4 e-tron, including the Sportback version, being the main electric model in the company's lineup.
Audi's global performance reflects the broader trend towards increased electric vehicle (EV) adoption. In 2023, global sales of electric cars reached approximately 13.8 million to 14 million, making up around 18% of total car sales, a notable increase from 14% in 2022. China led the global EV market, with 8.1 million units sold, followed by the United States with nearly 1.4 million EV registrations, and Germany with 700,000 EV sales. Norway stood out with 93% of new car sales being electric vehicles, while other countries like Iceland, Sweden, and Finland also had over 50% of their new car sales as EVs.
While the overall trend is positive, some regions experienced a slowdown or decline in EV sales. For example, Denmark and Hong Kong saw a drop in EV sales due to the phasing out of government subsidies. Nevertheless, the increasing demand for electric vehicles is evident, with Audi's strong sales growth in 2023 serving as a foundation for its focus on electrification and electromobility in the coming years.
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In 2023, 11.5% of Mercedes sales were EVs
Electric vehicles (EVs) are becoming increasingly popular, with a record 1.2 million sold in the US in 2023, according to the Kelley Blue Book. This represented 7.6% of the total US vehicle market, up from 5.9% in 2022. However, EVs still represent a small percentage of vehicles sold, with some sources stating that in 2023, they accounted for less than 1% of the 250 million vehicles on US roads.
In the mix of EV options, Tesla has been a prominent leader in EV sales in the US, capturing 55% of the EV market in 2023, though this was down from 65% in 2022. Other EV manufacturers have also been making inroads, including German luxury brands like BMW, Audi, and Mercedes.
In 2023, Mercedes-Benz sold over 222,000 all-electric cars, which accounted for around 11% of the brand's total sales volume. This included a mix of passenger cars and vans, with particularly strong sales in the US. In fact, in Q4 of 2023, Mercedes-Benz sold 13,511 BEVs in the US, a 139% increase. This strong performance in the US market contributed to Mercedes-Benz Vans achieving its best annual result to date, with sales of commercial vans up by 9% and electric van sales increasing by 51%.
While the overall percentage of EV sales for Mercedes-Benz was 11% in 2023, this figure varied across different regions and segments. For instance, in Q4 of 2023, all-electric car sales for Mercedes-Benz and Smart (an all-electric brand) amounted to 66,200, representing about 12.9% of the total volume. Additionally, in the US market, EVs comprised 15% of Mercedes-Benz's total passenger vehicle sales for the year, demonstrating the strong and sustained demand for EVs in that region.
Looking ahead, nearly all automakers are expected to see their share of EV sales increase. This is due in part to the continued electrification of fleets, improvements in charging infrastructure, and shifts in tax incentives. However, it's important to note that the growth rate of EV sales may slow down, and the high cost of EVs remains a barrier for many buyers.
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Frequently asked questions
7.6% of vehicles sold in the US in 2023 were electric, according to Kelley Blue Book estimates.
In May 2024, 6.8% of vehicles sold in the US were electric, according to Edmunds sales data.
Electric and hybrid vehicles made up 16.3% of total new light-duty vehicle sales in 2023, according to Wards Intelligence data.
Fully electric vehicles made up 1.7% of the non-luxury vehicle market in 2023, according to Wards Intelligence.
