The U.S. electric vehicle (EV) market continues its momentum toward a record-breaking year, with October delivering notable growth in both new and used EV sales. While new EV prices edged lower and used EV prices approached parity with traditional vehicles, inventory dynamics, and transaction pricing painted a clearer picture of the market’s trajectory.
Additionally, new EV sales reached 106,155 units in October, a 2.3% increase from the previous month, pushing the year-to-date total beyond 1 million units. This represents a 6.8% year-to-date increase compared to the same period in 2023. Contributing factors include consumer incentives and attractive leasing options, with incentives averaging 13.7% of the transaction price. On the used EV front, sales climbed to 23,788 units, holding a 1.6% market share. Year-to-date used EV sales surged by 63.5%, highlighting the growing interest in secondhand EVs as affordability improves.
Inventory Trends Reflect Shifting Market Dynamics
The supply of new and used EVs reflects the evolving demand landscape. In October, the days’ supply for new EVs stood at 101 days, marking a 6.3% month-over-month increase but a 9.4% decline year-over-year. This suggests a short-term rise in inventory while overall supply tightens annually.
For used EVs, the days’ supply closely mirrors internal combustion engine plus (ICE+) vehicles. October recorded a 48-day supply for used EVs compared to 46 days for ICE+ models. This figure is stable month-over-month but represents a 22.1% drop from October 2023, indicating a tightening supply of pre-owned EVs.
Moreover, in October, the average transaction price for new EVs fell slightly to $56,902, a 1.2% month-over-month dip while remaining flat year-over-year. Importantly, the price premium over ICE+ vehicles narrowed to $8,790, the smallest gap this year, signaling increasing competitiveness.
Used EVs also saw pricing shifts, with the average listing price rising to $37,912 in October. While this marks a month-over-month increase, it is down 6.4% year-over-year. The price premium for used EVs compared to ICE+ models, which was lowest in April at $1,489, climbed to $4,790 in October.
As the EV market heads into the final months of 2024, the combined strength of sales, competitive pricing, and narrowing supply gaps underscores the sector’s rapid growth and increasing alignment with consumer and market expectations.
