November 27, 2023

Electric vehicles and hybrids grow to a record-high 18% of U.S. light-duty vehicle sales

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Sales of hybrid, plug-in hybrid, and battery-electric vehicles (BEV) in the United States rose to 17.7% of new light-duty vehicle sales in third-quarter 2023, according to data from Wards Intelligence. Sales of hybrids, plug-in hybrids, and BEVs have accounted for 16.0% of all new light-duty vehicle sales in the United States so far this year, compared with 12.5% in 2022 and 9.0% in 2021.

The share of total light-duty vehicle sales for hybrids, plug-in hybrids, and BEVs 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. BEV prices declined across the most popular models, contributing to the rise in third-quarter sales. The average transaction price for BEVs dropped 5% during the third quarter to $50,283, bringing the price 24% lower than at the price peak in the second quarter of 2022. The average price paid for all light-duty vehicles fell less than 0.5% during that same time. BEV prices are now within $3,000 of the overall industry average transaction price for light-duty vehicles.

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BEV sales continue to be concentrated in the luxury category, growing to 34% of the total luxury vehicle market in the third quarter but remaining below 2% of the non-luxury vehicle market. As a share of sales within each powertrain type, vehicle sales classified as luxury accounted for 83% of all BEV sales and 13% of non-hybrid gasoline- or diesel-fueled engine vehicles, compared with 19% of the total light-duty vehicle market. This breakdown aligns with the current slate of BEV models offered by manufacturers: more than two-thirds are classified as luxury vehicles by Wards Intelligence.

Principal contributor: Michael Dwyer