Electrified Vehicles Surged To 18% U.S. Market Share In Q3 2023

The average transaction price for all-electric cars is now closer to the industry average than ever before.

Volkswagen ID.4

Mark Kane

By: Mark Kane

Nov 30, 2023 at 11:58am ET

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The share of electrified cars—including fully-electric ones, hybrids and plug-in hybrids—recently significantly increased in the United States, reaching a record level.

According to the U.S. Energy Information Administration (EIA) report, based on Wards Intelligence data, during the third quarter of 2023, the electrified share amounted to 17.7% of new light-duty vehicle sales. All-electric cars are already very close to passing non-rechargeable hybrids.

The average electrified vehicle share in the U.S. during the first nine months amounted to 15.8% of new light-duty vehicle sales. That's a noticeable improvement from 12.3% in 2022 and 8.5% in 2021.

Of course, there is still a lot of progress needed to at least achieve the level of adoption seen in Europe or China, but electrification is progressing every year now.

Falling BEV Prices

One of the most interesting findings is that the average transaction price of all-electric cars significantly decreased over the past 12 months as automakers and dealers alike have piled on the discounts and deals.

What do you think?

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Comments

According to EIA's report, based on Kelley Blue Book data, the average transaction price for BEVs dropped by 5% in Q3 to $50,283 (down 24% compared to Q2 2022), which is now within $3,000 of the overall industry average.

We know that there is still a gap between the BEV prices and what we would consider affordable but it's great news for consumers that the prices went down noticeably. In the longer term, it's expected that BEVs will get closer to the non-luxury price average, which currently appears to be roughly $45,000.