The surge in new all-electric car registrations in the United States during September continues to highlight the growing adoption of electric vehicles. Experian‘s registration data reported by Automotive News reveals that the total number of battery electric car (BEV) registrations during the first nine months of 2023 reached a staggering 852,904, representing a substantial 61 percent increase compared to the previous year. This growth constitutes around 7.4 percent of the total market share, indicating a notable uptick from the 5.2 percent recorded during the same period in 2022.
Market Share and Growth Trends
The market seems to be on track to surpass one million new all-electric cars in 2023, with an estimated eight percent market share. The month-to-month comparison reveals that approximately 98,000 new registrations were made in September, reflecting a 37 percent increase from the previous year. Despite a slower growth rate in recent months, the market share remained high at around eight percent in August and September.
Tesla notably recorded 489,454 new registrations during the nine-month period, indicating a 41 percent increase from the previous year, while non-Tesla BEV registrations amounted to 363,450, marking a substantial 98 percent year-over-year increase and claiming over 42 percent of the market share. The market share of Tesla in the all-electric segment dropped to 57.4 percent from over 65 percent a year ago, indicating a significant change.
Brand Performance and Model Preferences
Regarding the breakdown of BEV registrations from select brands, Tesla maintained a substantial lead with 489,454 new registrations, followed by Chevrolet with 50,160, Ford with 46,547, and Hyundai with over 40,000 units. Other notable brands included BMW, Rivian, Mercedes-Benz, and Volkswagen, all of which experienced significant increases in registrations.
Coming to the best-selling models during the first nine months of 2023, the Tesla Model Y stands out with 293,398 registrations, indicating an impressive 88 percent increase from the previous year. Following closely is the Tesla Model 3 with 165,543 registrations, demonstrating a 15 percent increase. Notably, the Chevrolet Bolt EUV garnered close to 31,000 registrations, positioning itself as the third most popular model. However, the Ford Mustang Mach-E faced challenges as its sales did not exhibit year-over-year growth, whereas the Volkswagen ID.4 and Hyundai Ioniq 5 experienced significant increases in registrations.
On the other hand, the Chevrolet Bolt EV and Tesla Model X witnessed a decline in registrations, while the BMW i4 and Rivian R1S achieved substantial growth. The Chevrolet Bolt EUV’s performance highlights an interesting trend, as it outperformed some well-known models, underscoring the evolving dynamics in the market.
Challenges and Global Competition
Though it is important to note that the growing all-electric car market is putting a strain on existing charging infrastructure. There are currently only around 48,000 public charging stations in the United States, which is far short of the number needed to support a mass adoption of EVs. The Biden administration has set a goal of installing 500,000 public charging stations by 2030. This investment is crucial to ensure that consumers have access to the charging infrastructure they need to drive EVs.
The United States is not alone in its embrace of all-electric cars. The global market for electric vehicles (EVs) is expected to reach $1.7 trillion by 2028, with China leading the way. In Europe, EVs are already accounting for over 10% of new car sales. This global trend is providing a strong tailwind for the US market.
