Electric vehicle (EV) sales in the United States reached a new high in the third quarter of 2023, surpassing 300,000 units for the first time, according to estimates from Kelley Blue Book, reports Cox Automotive. The total sales volume for the year through September stood at over 873,000, positioning the market to exceed 1 million sales by November.
In Q3, total EV sales hit 313,086, marking a 49.8% increase compared to the same period in 2022. This also represents a growth from the 298,039 units sold in the second quarter. Automakers such as Volvo, Nissan, Mercedes, and Hyundai reported sales increases exceeding 200%, primarily due to new models entering the market. Fourteen new EV models contributed to the Q3 sales figures, but Tesla dominated again.
EVs accounted for 7.9% of total industry sales in the third quarter, up from 6.1% a year ago and 7.2% in Q2. This growth has been attributed to higher inventory levels, more product availability, and downward pricing pressure. EV sales have now increased for 13 consecutive quarters.
Tesla cut its prices by approximately 25% year over year in an effort to boost sales volume. This strategy appears to have paid off, as Tesla’s Q3 sales grew by 19.5% year over year, outpacing the industry’s overall growth rate of 16.3%. However, Tesla’s market share in the EV segment dropped to 50%, the lowest on record, down from 62% in Q1.
German luxury brands Audi, BMW, and Mercedes also saw significant growth in their EV sales. In Q3, BMW and Mercedes more than tripled their EV sales compared to last year, while Audi reported a 94% increase. Among automakers offering both internal combustion engine and EV products, BMW led with over 15% of its sales being EVs, followed by Audi and Volvo with over 12%.
In 2020, U.S. EV sales surpassed 250,000 units for the first time. This year, the market is expected to leap past 1 million. Most analysts predict that the number of available EV products will likely double by 2027, indicating continued growth in U.S. EV sales volume.
