In Q3 2023, sales of hybrid, plug-in hybrid and battery-electric vehicles (EVs) in the United States rose to 17.7% of new light-duty vehicle sales, reported the U.S. Energy Information Administration (EIA).
So far this year, sales of hybrids, plug-in hybrids and EVs have accounted for 15.8% of all new light-duty vehicle sales in the United States, compared with 12.3% in 2022 and 8.5% in 2021.
The EIA noted that the share 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 EV models. Additionally, prices for EVs declined during the third quarter with the average transaction price dropping 5%. The average transaction price in Q3 was 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, said the EIA. BEV prices are now within $3,000 of the overall industry average transaction price for light-duty vehicles.
The reported rise in EV sales comes as various automakers announced they will be scaling back on EV production, including Ford and General Motors, due to the recent United Auto Workers strike and decreased EV sales.
In July, Ford CEO Jim Farley announced that the car company would slow its focus on “money-losing” EVs, shifting its investment toward Ford’s commercial vehicle unit and gas-electric hybrids.
Additionally, General Motors withdrew its 2023 forecast results and is reworking its EV strategy. CFO Paul Jacobson said the company is abandoning its goal of building 400,000 EVs through mid-2024.