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EV sales are still booming in California—and they continued to capture an even larger piece of the market in 2023.
EVs in the Golden State ended the year with a 5% increase in market share compared to 2022, despite a slight decline in the EV market share towards the end of 2023.
Looking at all of 2023, BEVs added up to 21.4% of the market in California while they amounted to 7.5% for the U.S. as a whole—and 33.8% of U.S. EV sales are in California.
California New Car Dealers Association – Q4 2023 data from Experian Automotive
The California New Car Dealers Association has released an update. ReportageExperian Automotive data published last week shows that EV sales by franchised dealers increased 94% between 2022 and 2023. Direct sellers saw a 29% increase.
“This helps further demonstrate that Californians are interested in purchasing new BEV model rollouts from the mainstay manufacturers that they know and trust,” the dealer association said. It also highlights the onslaught new fully electric vehicles that will arrive at dealerships much more frequently over the course 2023. These will cover a wider variety of vehicle types.
It’s also hard to argue, from any of the provided overarching data, that non-electrified vehicles are on the rebound. The group highlights that non-hybrid ICE vehicles will account for only 63.9% in 2023. This is down from 71.6% of sales in 2018 and 88.4% of sales in 2017.
2023 Tesla Model Y – Courtesy Tesla, Inc.
According to the group’s estimates, the top 3 cars sold in 2023 in the state were the Tesla Model 3Toyota Camry & Honda Civic were the top two light trucks sold by the state. Tesla Model YToyota RAV4 or Honda CR-V?
It was a market once again Tesla is the most important factor. The Tesla Model Y and Model 3 together accounted for more than 215,000 sales within the state of California in 2023. This is nearly a third of the state’s total sales in 2023. one in eight vehicles soldIn the state, whether electric or not.
Or, to calculate Tesla’s importance in California, and California’s importance to Tesla another way, 12% of Tesla EVs sold globally—or nearly one in eight—were delivered in California.
2024 Toyota RAV4 Prime preview
For every one Toyota RAV4 SUVs that are sold in the state—Toyota’s top California seller, including the Plug-in hybrid RAV4 prime—more than 18 Model Ys were sold. Toyota still has a lot of models and managed to maintain its position as the number one brand in California by 2023.
The Q4 2023 marked a fourth consecutive increase in the sales of new cars as a group, while the registrations of EVs were down the last two quarters from a high of 102.991 new electric vehicles in the state during Q2 2023.
Plug-in Hybrids ended the year with a very slight increase in sales. Non-plug-in Hybrids achieved a record 13,3% of the total market. All within a rounding-error, as we reported in the summer of last year 25% of California’s new vehicles come with a charging port.
Lucid Air range test – Richmond San Rafael Bridge
Analysts have attributed the lull of EV growth, both before and after the results, to a lack of enthusiasm for the federal EV credit. This will be offered to a growing range models as a rebate at the point-of-sale, once they meet the new, stricter sourcing rules, and when dealerships apply.
It won’t be clear until the Q1 results are released in April whether this is a hiccup, or a more pronounced tendency that’s holding back EV adoption.