xEVs, including battery-electric, hybrids, plug-in hybrids, reached a record market share of almost 18% in the US light-duty vehicle segment in Q3 2023.
Sales growth – Jan to Sep 2023
xEVs continues to increase its share in new light-duty vehicle sales to 17.7% in the first nine months of the year, the US Energy Information Administration (EIA) reported using Wards Intelligence data.
More impressively, BEVs are getting increasingly closer to beating non-rechargeable hybrids from Jan-Sep 2023.
In fact, all-electric vehicle models share of all new light-duty vehicle sales grew to 16.0% so far this year. It indicates a notable increase from just 12.5% in 2022 to 9.0% in 2021.
Driving factor
InsideEVs noted that declining prices of battery-electric cars boosted the third-quarter sales of xEVs in the US light-duty segment.
Prices dropped over the last 12 months due to major discounts and financing deals from both automakers and dealers as they seek to stimulate demand and empty inventories.
BEVs’ average transaction price declined by a notable 5% to $50,283 in the third quarter, EIA reports, citing Kelley Blue Book data. This figure also represents a 24% decline from the Q2 2022 peak.
In effect, BEV prices now fall within $3,000 of the light-duty vehicle industry average transaction price.
Luxury segment dominates BEV sales
Luxury BEVs reportedly surged to 34% of the overall luxury vehicle sales in Q3 2023. However, it is still under 2% of the non-luxury vehicle segment.
It is also worth noting that luxury vehicle sales contributed 83% of all BEV sales in the third quarter, according to the report. It also accounted for 13% of non-hybrid gasoline- or diesel-fueled engine vehicle sales.
The high prices of BEVs continue to be among the top concerns of US customers, impeding them from joining the e-mobility shift. That said, the notable price declines in the past 12 years are undoubtedly a good development in the competitive EV market. It would be exciting to see BEVs become increasingly affordable for customers seeking to replace their traditional gas-powered cars and planning to own a car for the first time.
