Electric vehicles account for more than 20% of the U.S. market share

The electric revolution has proven to be a slow evolution, but the trend toward electrification is undeniable. This is already evident today, with electric vehicles capturing 20.2% of the U.S. market share in the third quarter.

Hybrid vehicles accounted for 9.8% of third-quarter sales, Cox Automotive said, citing data from Kelley Blue Book. This ratio was up from 8.1% a year ago, with Toyota unsurprisingly becoming the big winner with a 50% share. This is followed by Honda (19%) and Ford (11%).

More: U.S. EV sales jump 5%, legacy brands offset Tesla losses

Electric vehicles also grew, with market share climbing from 7.9% to 8.6%. More interestingly, the chart shows how EVs increase in popularity around 2022, then gradually cool down and experience slower growth.

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The market share of plug-in hybrids fell from 2% to 1.8% last year. While the decline is relatively small, Jeep remains a plug-in hybrid powerhouse thanks to the Wrangler 4xe and Grand Cherokee 4xe. Toyota and Volvo are closely followed by Jeep with 21% market share, and both control 15% of the segment.

Speaking of declines, the market share of traditional internal combustion engine vehicles fell below 80% in the third quarter. This is a significant shift since they also controlled over 90% of the market in the second quarter of 2021.

Returning to electric vehicles, sales and market share have been trending upward in a relatively stable manner since the beginning of 2022. Tesla dominates with 49.5% market share, while Ford (6.8%) and Hyundai (4.8%) lag far behind.

Sales and adoption vary widely from state to state, as electric vehicles tend to be more popular in coastal areas. However, they have made progress, with Colorado, Washington and Nevada seeing the largest increases in adoption, Cox said.

Electric vehicle transaction prices have fallen sharply, helped by massive incentives designed to help reduce excess inventory over the summer. While supply levels are now similar to conventional vehicles, the average incentive amount for electric vehicles last month was $8,202. The trading price also fell to $55,105, down from about $63,000 in early 2022.

Considering the leasing loophole for electric vehicle tax credits, it’s no surprise that more and more customers are going this route. Leasing rates jumped from less than 10% before the North American production requirements took effect to more than 40% after they took effect.

Image Credit: Cox Automotive