Cox Automotive group released their Q3 2023 EV sales for the automotive industry in the United States showing that in Q3 EV sales jumped past 300,000 for the first time in the U.S. market. EV sales through September reached just over 873,000 which puts the market on track to surpass 1 million EV sales. This milestone is estimated to be reached some time in November.
Q3 EV sales estimates are 313,086 EV sales, a 49.8% increase over the same period last year. This is an increase from the 298,039 EVs sold in Q2. Sales of EVs posted noticeable gains over 2022 with Hyundai, Nissan, Volvo and Mercedes having a 200% increase in EV sales thanks to the new products they released to market.
Total industry sales in Q3 showed EVs had a 7.9% market share. This is up from 6.1% a year ago and 7.2% in Q2 2023. As pointed out by Cox, EV sales have now had 13 straight quarters of increased sales.
EV transaction prices were down in Q3 compared to a year ago with most of this due to Tesla slashing prices to increase sales. Prices are now down 25% across the board for all EVs year over year. While price cuts helped Tesla grow their sales which is showing a 19.5% year over year increase and an industry overall growth rate of 16.3% this does come with the downside that Tesla has lost market share hitting 50% as more EV options from competitors hits the sales room. Tesla had a 70 plus % market share ending 2022, closed out Q1 2023 at 62% and now closes Q3 with a 50% market share.
German luxury makers showed rapid EV sales as Audi, BMW, and Mercedes showed a tripling of sales year over year with Audi posting the largest increase of a 94% sales increase in EV sales.
While we have the 100% club of Fisker, Rivian, Tesla and Vinfast who only sell EVs, the rest of the automotive industry is a mix of ICE and EV sales and as such was led by BMW who closed out Q3 with 15.6% of their auto sales being EVs in the U.S..
In 2020 the U.S. had sold just 250,000 EVs with the bulk of that being Tesla. Three years later we are primed for EV sales crossing 1 million sold. Tesla still is the undisputed leader in EV sales, but their market share is dwindling.
The coming flood of EV models over the next 18 to 24 months have analyst forecasting a doubling of EV models offered and a major shift in marketshare for every auto company.
Full details of the sales report can be read here:
The key takeaway for Q3 is that EV transaction prices are down 22% with an average transaction price of $50,683 paid in September. This on top of other companies rapid increase in sales such as Rivian who delivered 15,564 EVs for Q3 representing a 126% increase year over year. GM began deliveries of the Silverado EV with 18 units delivered at the end of September.