EV sales surge in Q3: Which companies are rejoicing?

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【Summary】US electric vehicle (EV) sales increased by 50% in Q3 2023, with a total of 313,086 battery EVs sold during this period. Tesla remains the market leader but has seen its market share decline to 50%. Price cuts by Tesla have affected the entire sector, with the average price of a new EV decreasing. Other brands, such as Volvo and Nissan, have shown significant sales growth, and BMW, Hyundai, and Mercedes have experienced increased demand for their EVs.

FutureCar Staff Oct 17, 2023 11:30 PM PT

EV sales surge in Q3: Which companies are rejoicing?

Despite the United States being a car-centric nation, it has been lagging behind the European Union and China in terms of electric vehicle adoption. The lack of investment in redesigning towns and cities to be more walkable and accessible via public transport has made switching to electric cars the main avenue for decarbonizing transportation. However, there is some encouraging news as sales of electric vehicles in the US have increased by 50 percent year on year, with uptake reaching almost 8 percent.

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

The cumulative totals for 2023 so far also indicate healthy growth. KBB estimates that 873,082 EVs have been sold this year, compared to 586,965 for the first nine months of 2022. When including fuel cell EVs, 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 EV models and options, which have helped push prices lower.

Tesla remains the leading brand in terms of EV sales, with a market share of 50 percent. However, its market share has decreased from 62 percent, indicating growing competition from other brands. Tesla sold 156,621 cars in Q3 2023 and a total of 493,513 cars so far in 2023. While these numbers are higher than the same periods in 2022, they fall short of Tesla's target of 50 percent year-on-year growth.

Tesla has implemented price cuts throughout the year, affecting the entire sector. The average price of a new EV in September 2023 was $50,683, compared to $52,212 in August. Incentives for EV sales accounted for almost 10 percent of the average selling price, according to Cox. Additionally, there is an ample supply of new EVs, with 97 days of inventory compared to less than 60 days for internal combustion engine cars at the start of September.

While Tesla may be facing challenges, there are several other brands experiencing significant sales growth. Eleven different brands have shown triple-digit sales increases in Q3 2023 compared to the same period in 2022. Brands such as Volvo, Nissan, BMW, Hyundai, and Mercedes have seen substantial growth in EV sales.

When comparing year-to-date sales for 2023 and 2022, nine brands have shown year-on-year increases, with six additional brands entering the market. Rivian, Chevrolet, BMW, and Mercedes have experienced significant growth in EV sales. Ford holds the third-largest market share with a 13.2 percent increase in sales year on year.

However, there are some brands that have seen declines in EV sales. Kia, Porsche, Mini, Jaguar, and Mazda have experienced decreases in sales compared to the previous year.