EVs Hit Records, But Sales Growth Slows

More American consumers opted for an electric vehicle last year as the segment’s share of sales continued its gradual climb.

EVs made up about 8% of new-vehicle sales in the U.S. to a record of about 1.2 million units, up from 6% in 2022, Cox Automotive said.

The fourth quarter saw EVs also hit volume and sales records at over 317,000 units and 8% market share, but growth slowed, said Cox, which predicts continued growth slowing. It suspects there may be a quarterly decrease this year for the first time in over three years.

Fourth-quarter sales were up 40% year-over-year for the quarter, down from 49% in the third quarter and 52% in the fourth quarter of 2022 in a year-over-year comparison.

Cox expects EVs to hit 10% U.S. market share this year, which it’s dubbed the “Year of More” for EVs – more new products, incentives, inventory, leasing and charging infrastructure – all of which it expects to increase EV sales even more.

It said price parity with gas-powered models appears attainable in “coming years,” though it didn’t specify a target year. High prices are one of the main factors U.S. consumers cite for avoiding EVs. Cox said the average price for a new one was about $51,000 in December and that there were just two models under $40,000.

Tesla still easily led the U.S. EV market last year with a 55% share. Though its advantage shrank by 10 percentage points, it gained strength with price cuts, Cox said.

LEARN MORE: Global EV Sales to Keep Rising This Year