The electric vehicle market presented a mixed bag of results in January, with new EV sales volume down but market share hitting a record high, and the used EV market continuing its steady growth.
These trends, coupled with insights into inventory and pricing, paint a dynamic picture of the evolving EV landscape.
New EV Sales Dip, But Market Share Soars
January saw 102,243 new EVs sold, a healthy 29.9% increase year-over-year. While this marks the tenth consecutive month surpassing 100,000 units, a month-over-month decline was expected following a record-breaking December. Despite the volume dip, new EVs achieved a record market share, demonstrating sustained consumer interest.
The top sellers were the Tesla Model Y, Model 3, Volkswagen ID.4, Tesla Cybertruck, and Honda Prologue, accounting for 54% of all new EV sales. Notably, the Volkswagen ID.4 made a strong comeback, with sales surging 653% to 4,979 units.
Used EV Market Continues its Upward Trajectory
The used EV market continued its expansion, with sales up 3.5% in January, reaching the second-highest volume on record at 26,933 units. This represents a 30.5% year-over-year increase and a 1.8% market share. Tesla, Chevrolet, Mercedes-Benz, Ford, and Nissan led the used market in sales volume. Mercedes-Benz saw particularly strong growth, with a 54% month-over-month increase.
The most popular used models were the Tesla Model 3, Model Y, Model S, Chevrolet Bolt, and Ford Mustang Mach-E.
Inventory Dynamics: Tightening Supply for Used Evs
New EV inventory, measured in days’ supply, rose slightly to 87 days, still below that of internal combustion engine (ICE) vehicles. Year over year, new EV days’ supply is down significantly, indicating improved inventory turnover.
Conversely, the used EV days’ supply tightened further to just 45 days, suggesting strong demand likely driven by affordability, available tax incentives, and growing consumer confidence in EV reliability, bolstered by battery warranties.
Pricing Trends: Slight Increases for New, Mixed Bag for Used
The average transaction price for new EVs edged up slightly to $55,614 in January, while incentive spending decreased compared to December but remained higher year-over-year. Volkswagen, Subaru, Kia, and Nissan offered the highest incentives, averaging 36.2% of the transaction price.
Used EV listing prices averaged $37,476, a slight increase month-over-month but a decrease year-over-year. Intriguingly, ten brands offered used EV listing prices at or below their ICE counterparts, and nearly 40% of used EVs sold for under $25,000.
[source: Cox Automotive]
