EV sales surge in Q3-which companies are rejoicing?

author: FutureCar Staff    

In the United States, electric vehicle adoption has been lagging behind countries like the European Union and China. The lack of investment in redesigning towns and cities to be more walkable and accessible via public transport has made switching to electric cars a crucial step in decarbonizing transportation. However, there is some encouraging news as more US car buyers are choosing electric vehicles. Sales have increased by 50 percent year-on-year, with almost 8 percent of car buyers opting for electric vehicles.

According to Kelly Blue Book (KBB), US car buyers purchased 313,086 battery electric vehicles (BEVs) between July and September 2023, compared to 209,030 BEVs during the same period last year. When including hydrogen fuel cell electric vehicles (FCEVs), such as the Toyota Mirai and Hyundai Nexo, there is a 50.1 percent increase in sales year-on-year.

The cumulative totals for 2023 are also promising. KBB estimates that 873,082 BEVs have been purchased this year, compared to 586,965 during the first nine months of 2022. When including FCEVs, clean vehicle sales have grown by 49 percent year-on-year.

Stephanie Valdez-Streaty, the director of industry insights at Cox Automotive, which owns KBB, attributes the increase in sales to the availability of more electric vehicle models and options. Lower prices and a wider range of choices have contributed to higher sales.

Tesla remains the leader in electric vehicle sales, with a significant market share. However, its market share has decreased from 62 percent to 50 percent as other brands ramp up their production. Despite selling more cars than in 2022, Tesla's growth of 26.3 percent falls short of its target of 50 percent year-on-year growth.

Tesla has implemented price cuts, which have had an impact on the entire electric vehicle sector. The average price of a new EV in September was lower compared to August, and incentives for EV sales accounted for almost 10 percent of the average selling price.

Cox Automotive notes that there is an ample supply of new EVs, with 97 days of inventory compared to less than 60 days for internal combustion engine cars. This increased supply has contributed to the growth in sales for various brands.

Several brands have seen triple-digit sales increases in Q3 2023 compared to the same period in 2022. Volvo showed the largest gain with a 654.1 percent increase, followed by Nissan with a 376 percent increase. BMW, Hyundai, and Mercedes have also experienced significant growth in sales.

When comparing year-to-date sales from 2023 and 2022, nine brands showed year-on-year increases, and six additional brands entered the market. Rivian, Chevrolet, BMW, and Mercedes have seen substantial growth in EV sales. Ford holds the third-largest market share after Tesla and Chevrolet, while some brands, such as Kia, Porsche, Mini, Jaguar, and Mazda, have experienced declines in sales.

FutureCar Staff