Recent report by the U.S. Energy Information Administration (EIA) stated that the combined sales of electric vehicles and hybrid vehicles touched a record high of 18%. EIA writes that “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 rapidly increasing adoption not only shows interest towards all electric vehicles but the hybrid vehicles are also playing a vital role in the process of electrification of the mobility market. Tax credit, enormous EV options, well connected charging infrastructure and cutting edge technology are the reasons for the consumer to prefer the electric and hybrid vehicles over the gasoline one.
The report also highlights that “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.”
It is also said that the Battery Electric Vehicles (BEV) are concentrated in the luxury category market. As data shows the BEV saw 34% growth of the total luxury vehicle market in the third quarter but that remains below 2% of the non-luxury vehicle market.
Therefore, it is clearly stated that BEV’s are dominate the lower end of the luxury vehicle market. But, the market is shifting and people are more interested in electric transition. It is not shocking to see some notable shifts in the coming years.
