- Electrified vehicles continue to increase in popularity and hybrids are leading the way.
- Electric vehicle market share climbed in the third quarter and Tesla remained dominant.
- Plug-in hybrids experienced a small drop in market share, but Jeep is still king.
The electric revolution turned out to be more of a slow evolution, but the trend toward electrification is undeniable. That’s clear today as electrified vehicles grabbed a 20.2% market share in the United States during the third quarter.
Citing data from Kelly Blue Book, Cox Automotive said hybrids made up 9.8% of sales in Q3. That’s up from 8.1% a year ago and Toyota was unsurprisingly the big winner with a 50% share. They were followed by Honda (19%) and Ford (11%).
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Electric vehicles also saw gains as their market share climbed from 7.9% to 8.6%. More interestingly, the chart shows how electric vehicles increased in popularity around 2022, before cooling off and experiencing more gradual growth.
Plug-in hybrid market share dropped from 2% to 1.8% over the past year. That’s a relatively small decline, but Jeep remains a PHEV powerhouse thanks to the Wrangler 4xe and Grand Cherokee 4xe. Toyota and Volvo weren’t far behind Jeep’s market share of 21% as they both controlled 15% of the segment.
Speaking of declines, traditional ICE-powered vehicles saw their market share drop below 80% in the third quarter. This is a significant shift as they controlled over 90% of the market as recently as the second quarter of 2021.
Getting back to EVs, sales and market share have been trending upward in a relatively steady fashion since early 2022. Tesla dominates with a 49.5% market share, while Ford (6.8%) and Hyundai (4.8%) trail far behind.
Sales and adoption vary significantly by state as EVs tend to be more popular on the coasts. However, they’ve been making inroads and Cox says the biggest increases in adoption can be seen in Colorado, Washington, and Nevada.
EV transaction prices have fallen significantly and this has been aided by hefty incentives, which were introduced to help reduce excess inventory over the summer. While supply levels are now similar to traditional vehicles, EVs had an average of $8,202 in incentives last month. Transaction prices also fell to $55,105, which is down from around $63,000 at the start of 2022.
Given the leasing loophole for EV tax credits, it’s not surprising that an increasing number of customers have gone that route. The lease rate jumped from under 10%, before the North American production requirements came into effect, to over 40% in the aftermath.
