In a landmark year for the automotive industry, nearly 1.2 million electric vehicles (EVs) were purchased in the United States in 2023, setting a new record. This information, provided by Kelley Blue Book, a Cox Automotive company, underscores the increasing shift towards an electrified automotive future. In 2023, EVs accounted for 7.6% of the total U.S. vehicle market, a significant rise from the 5.9% market share in 2022.
The fourth quarter of 2023 saw unprecedented growth in EV sales, both in volume and market share. Sales were 52% higher than the same period in 2022, with 317,168 EVs sold from October to December, comprising 8.1% of all new car sales. The average price for a new EV in December was noted at $50,789.
Stephanie Valdez Streaty, the director of Industry Insights at Cox Automotive, highlighted the groundbreaking sales figures, stating, “Americans bought a record-shattering 1,189,051 electric vehicles (EVs) last year, and we expect that growth to continue into the future.” She emphasized the ongoing momentum in the EV sector, pointing to increased product availability, incentives, inventory, leasing options, and infrastructure. Streaty also mentioned the narrowing price gap between internal combustion vehicles and EVs, predicting the EV market share to reach 10% by 2024.
Tesla remains at the forefront of the EV market, with 55% of all EVs sold in the U.S. in 2023 being Tesla products. Despite a decrease from 65% in 2022, Tesla’s market dominance was bolstered by significant price cuts, particularly for its Model Y SUV and Model 3 sedan, making them more accessible to a broader range of consumers.
Other major auto manufacturers are also making strides in the EV market. Notably, 12.5% of all new BMW sales were EVs last year. Mercedes-Benz and Audi saw increases in their EV sales, contributing 11.4% and 11.0% to their total brand sales, respectively. Among non-luxury brands, Volkswagen led with EVs constituting 11.5% of its sales in 2023.
The EV market is rapidly expanding, with Kelley Blue Book estimating over 70 EV options available to consumers within the next two years, signifying a diverse and competitive landscape for electric vehicles in the near future.
