According to estimates from Kelley Blue Book, a subsidiary of Cox Automotive, a record high of 1.2 million American car buyers opted for electric vehicles last year. This marks a steady shift towards an electrified future as 1,189,051 new EVs were placed into operation. Estimates from Kelley Blue Book also indicated that in 2023, EV sales accounted for 7.6% of the overall vehicle market in the U.S., an increase from 5.9% in 2022.
Regarding volume and share, EV sales in the fourth quarter broke records, emerging at 317,168 units and 8.1%, respectively. And while there were new records, the often-reported downturn is true. By all measures, Q4 EV sales grew 40% year over year; nonetheless, this was not as significant as the rise of the industry’s prior quarters.
Furthermore, new data indicates that although adoption rates differed by state last year, the market for battery electric vehicles (BEVs) in the U.S. grew. According to data released by Cox Automotive, U.S. BEV sales achieved a significant milestone of 1.1 million vehicles in 2023.
Stephanie Valdez Streaty, Cox’s Director of Industry Insights, asserted that “2023 witnessed an increase in EVs despite facing several obstacles.” She further noted that “The demand for EVs is expanding. Although some new EVs vanished from the market, others remained for a longer period.”
In 2023, Tesla retained its position as the market leader for BEVs, selling 654,888 units in the U.S., a 25.4% climb from the previous year.
Other notable OEMs that experienced notable gains were Honda, which witnessed a 33% boost in sales from 2022, and General Motors, which led the market overall with a year-over-year sales increase of 14.1%.
Considering both BEV and hybrid powertrains, the combined EV market share was approximately 16% last year. Cox anticipates that the share will increase to 24% in 2024 and to 31% in 2025. The industry is expected to welcome 70 new EV models in those years alone, which could assist in fueling the market’s ongoing increase in share.
