The U.S. electric vehicle (EV) market is making significant progress toward the 2030 goal of achieving a . Data from the third quarter (Q3) of 2023 indicates that battery electric vehicles (BEVs) now represent nearly 8% of new light-duty vehicle (LDV) sales, an all-time high. Additionally, the combined sales of hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs)and BEVs have reached a record market share of 17% in the LDV segment.
As of Q3 2023, total BEV year to date sales amounted to 867,000 units. This represents a 55% increase compared to the same period in 2022 and an impressive 170% increase from the same period in 2021.
Market share evolution of electrified vehicles (HEV, BEV and PHEV) in total new light-duty vehicle sales
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Source: SGS INSPIRE analysis of U.S. Department of Energy and Kelley Blue Book data, 2023
Several factors have contributed to the increased market penetration of EVs, including a rise in gasoline prices, a broader range of available EV models, and a decrease in the price of EVs. The average price differential of EVs compared to the overall market average, including both EVs and combustion-engine vehicles, has decreased from 40% in 2020 to approximately 20% in 2023.
Additionally, it is expected that EV prices will continue to decline, partly influenced by new , which are anticipated to impact the market in the coming months.
Trends in price differential between EVs and overall new vehicles average
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Source: SGS INSPIRE analysis of Kelley Blue Book data, 2023
Another factor contributing to the increased adoption of electric vehicles (EVs) is the growth in charging infrastructure. The U.S. has witnessed a notable expansion in its EV charging network over recent years; this growth underscores the U.S.'s commitment to advancing electromobility. As of the second quarter of 2023, the U.S. has over 155,000 charging points, reflecting the nation's strong dedication to developing a reliable and extensive charging infrastructure for EVs.
For additional information regarding the global EV market and the U.S. EV market, please refer to the following SGS INSPIRE reports: and the upcoming U.S. EV reports.