- EV and hybrid sales are rising in the state, while plug-in hybrid registrations show little movement this year.
- California is projected to register 1.75 million light vehicles in 2023, slightly down from last year’s total.
- Nearly 40% of new cars sold in California are electrified, reflecting growing interest in alternative powertrains statewide.
California has long been a hotbed for electric vehicles in the USA, and through the first nine months of this year, EVs accounted for 22.2% of all new vehicle sales across the state, according to the California New Car Dealers Association (CNCDA). While this represents only a modest increase from the EV share reported over the same period last year, it’s significantly more than the 9.1% share they had in 2021.
Between January and September, 1,320,708 new light vehicles (across all powertrains) were registered across the Golden State. This marks a 1.7% decline from the same period in 2021, with 362,881 cars (down 13.1%) and 957,827 light trucks (up 3.4%). By the end of the year, 1.75 million new vehicles are expected to be registered in California—a slight drop from the 1.77 million delivered last year and a considerable decline from pre-COVID years, when annual sales between 2015 and 2019 consistently hit or exceeded 1.89 million units.
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What’s particularly interesting is the proportion of recent sales that have been for BEVs and hybrids. Sales of BEVs have jumped to 293,109 units, or a 22.2% share of the market year-to-date, slightly higher than the 21.5% share they had through all of 2023. The proportion of traditional hybrid vehicles sold this year has also risen, with 182,469 being registered to new homes. Hybrids now accounted for 13.8% of the total market.
In contrast, plug-in hybrid sales are lagging behind BEVs and standard hybrids. Only 45,244 units were sold in the first nine months of the year, holding steady at a 3.4% market share—the same as their share through all of 2023.
Gasoline-powered vehicles remain by far the most popular powertrain choice in California. Of all the new light vehicles sold in the state this year, 58.3% have gas engines. BEVs are the next most popular at 22.2%, followed by hybrids at 13.8%, plug-in hybrids at 3.4%, and diesel-powered ICE models at 2.3%. Altogether, the combined market share of BEVs, hybrids, PHEVs, and fuel cell vehicles has reached 39.4%.
The best selling EVs
When it comes to BEV dominance, Tesla remains the undisputed heavyweight champion in California. According to CNCDA data, the Tesla Model Y towers over the competition with a staggering 105,693 new registrations from January to September this year, making it the state’s best-selling BEV by a margin that’s almost embarrassing for its rivals. Its smaller sibling, the Tesla Model 3, comes in second with 34,219 units, while the Hyundai Ioniq 5—an up-and-comer in the EV space—takes a distant third with just 11,711 units sold. If the Model Y was a politician, it’d be running unopposed.
However, Tesla’s overall performance in California tells a more nuanced story. The company’s EV market share in the state has slipped by 8.5% compared to last year, marking a full 12 months of incremental declines, according to CNCDA. And while Tesla may still own the lion’s share of the BEV segment, the competition is sharpening its claws. Brands like Kia, BMW, and Hyundai are quietly but consistently chipping away, each posting year-to-date EV market share gains of 1.4%, 1.3%, and 1.3%, respectively.
Toyota the overall leader, Tesla second
Looking beyond BEVs to the broader automotive landscape in California, Toyota comfortably claims the top spot across all powertrains with 215,402 registrations so far this year, holding a commanding 16.3% market share. Tesla settles for second place with a 12.1% share, while Honda rounds out the top three, capturing 10.9% of the market.
