Summary
- EV sales continue to expand in the US according to Cox Automotive market report
- September marked the sixth consecutive month with new EV sales surpassing 100,000 units
- Price gap between electric and traditional vehicles is narrowing
- Used EV sales are up, staying small but growing steadily
- EV sales are expected to accelerate in the future, despite declining dealership sentiments
Article
Cox Automotive recently released a market report indicating growth in EV sales in the US, with September marking the sixth consecutive month of new EV sales surpassing 100,000 units. The EV share of new vehicle sales reached 9% in September, the highest monthly level to date. The price difference between electric and traditional vehicles has also narrowed, making EVs more accessible to a wider range of consumers. Strong incentives in the new vehicle market, such as the $7500 federal tax credit, have contributed to this growth in sales.
While EV sales declined on a month-over-month basis in September, they still surpassed 100,000 units sold. In the new vehicle market, incentives for EVs remain high, including the federal tax credit and regulations that benefit leased EVs. Used EV sales also showed steady growth, with 26,626 units sold and a 1.7% market share. However, the average price of a used EV increased slightly in September but remains lower than the previous year, making them more competitive with traditional vehicles. Despite this, new EVs still have a higher average transaction price.
The data from Cox Automotive shows that the demand for new EVs remains steady, with the days’ supply indicator stable. In September, the new EV days’ supply was 93, indicating strong demand supported by heavy discounts. Used EV days’ supply is also narrowing the gap with traditional vehicles, with a supply of 47 days compared to ICE vehicles with 45 days. With the ongoing growth in the EV sector and decreasing prices, the future looks promising for both new and used electric vehicles in the US.
The overall sentiment among US auto dealers is uncertain, with many dealers feeling the effects of declining sales and rising costs. The market outlook index dropped in Q3, suggesting a majority of dealers expect the auto market to weaken in the coming months. Franchised dealers posted a market outlook index score below 50 for only the third time in survey history, while independent dealers’ profitability has declined. Despite ongoing concerns, the EV sector is expected to continue growing as manufacturers increase production and government incentives support EV adoption.
The future of EV sales in the US is optimistic, despite some challenges faced by traditional auto dealers. The continued growth in EV sales, stable inventory, and decreasing prices indicate a bright future for electric vehicles. As manufacturers ramp up production and government incentives support EV adoption, the sector is expected to accelerate further. While some predict a decline in EV demand, the data from Cox Automotive suggests otherwise, with increasing sales of electric vehicles in the US market. Dealers are facing challenges with declining sales of conventional vehicles and rising costs, but the EV sector shows promise for the future.
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