Americans bought more than a million electric vehicles this year

In the United States, the sales of fully electric vehicles (EVs) hit an unprecedented milestone in 2023, with purchases surpassing one million units for the first time in a single year. By October, totals were just shy of a million, with expectations that this figure was exceeded shortly thereafter. These statistics represent purely electric vehicles only, not including plug-in hybrids.

The surge in EV sales is attributed largely to the wider availability of models. There was a 40% jump in the number of EV models on offer, totaling 95 by mid-2023. Furthermore, financial incentives, such as tax credits provided under new legislation aimed at reducing inflation, have played a role in encouraging consumers to choose electric vehicles.

Electric vehicles represented approximately 8% of all new vehicle sales in the US in the first half of the year, a fraction of the global picture where 15% of new passenger vehicle sales were EVs. China led the way with 19% of all vehicle sales being electric, followed by Europe. The US ranked third globally, making up 12% of the world’s EV market.

Despite North America’s leading role in road transportation carbon emissions, increasing EV sales are yet to have a significant impact on global emissions. It’s anticipated that it will take until later in the decade before these sales begin to have a meaningful effect on reducing emissions.

Industry professionals have noted solid performance from a range of automakers in the US market, including record EV sales for some like the popular electric truck model that had previously seen a production reduction.

Growth in the EV market was robust, with year-on-year increases expected to be above 50%. Reports of dwindling EV demand proved to be overstated, as sales figures came in just slightly below predictions.

The lower-than-anticipated sales were partially linked to the transition of the market from early adopters to more typical, potentially more cautious, consumers. There’s also an identified need for auto dealers to better inform and educate customers about EVs’ benefits and value to increase adoption.