EVs, PHEVs, and hybrids made up 16.3% of total light-duty vehicle (LDV) sales in the US in 2023 – Tesla’s price cuts were a big reason.
The 2023 percentage is 3.4% higher than in 2022, when hybrid, plug-in hybrid, and BEV sales made up 12.9% of total sales. The second half of 2023 saw the highest share of hybrids, plug-in hybrids, and BEVs of total LDV sales at 17.9%.
The US Energy Information Administration (EIA) points out that 2023 sales of hybrid and EVs rose as the number of BEV model choices increased, hybrids were offered in more popular size classes, and EV prices declined. The Inflation Reduction Act’s $7,500 tax credit also made EVs more compelling to consumers.
Manufacturers added 20 new BEV models during 2023 – mainly in the second half – for a total of 70 BEV models at year-end out of 459 unique LDV models. Half of the new BEV models were crossover vehicles, a popular market segment that has more than doubled its share of total LDV sales in a decade.
The average transaction price for BEVs fell to $50,798 in December 2023, dropping the price by 24.2% compared to the price peak in the second quarter of 2022.
Tesla’s price cuts played a major role in 2023’s overall BEV price drop. The average Tesla vehicle transaction price dropped 29% between June 2022 and December 2023. The average price paid for all LDVs increased by 1.5% during that same period. So the gap between BEV and overall industry average LDV transaction prices shrunk from $19,000 in June 2022 to just $2,000 at the end of 2023, according to Kelley Blue Book data.
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