Thanks To Price Drops, EVs and Hybrids Grow To 18% Of U.S. Vehicle Sales

The U.S. Energy Information Administration (EIA) has announced that, according to Wards Intelligence data, the sales of hybrid, plug-in hybrid, and battery-electric vehicles in the United States rose to 17.7 percent of new light-duty vehicle sales in the third quarter of 2023. So far this year, sales of these vehicles have accounted for 15.8 percent of all new light-duty vehicles thus far this year. Up from 12.3 percent in 2022 and 8.5 percent in 2021. The increase is due mainly to price drops.

The share of total light-duty vehicle sales for electrified vehicles rose due to both a decline in sales of non-hybrid gasoline- and diesel-fueled vehicles as well as an increase in sales of several existing BEV models. A large contributor to the rise in electrified sales was a decline in prices for popular battery-electric models. The average transaction price for a BEV dropped by 5 percent during the third quarter, settling at $50,282 on average. That is 24 percent below the price peak for an electric vehicle in the second quarter of 2022. The average price paid for a non-electric vehicle dropped by less than half a percent in that same period.

Luxury vehicles accounted for 91 percent of all battery-electric sales, making BEVs about 34 percent of the total luxury vehicle market. BEVs are still less than 2 percent of the non-luxury segments. About two thirds of all electric vehicles on offer are classed as luxury vehicles by Wards Intelligence.