New Automotive Gross sales Fell in 2022, However New Electrical Automotive Gross sales Rose Dramatically

People purchased fewer automobiles final 12 months than in any 12 months since 2011. However we purchased extra electrical automobiles than ever earlier than.

Whole new automobile gross sales fell 8% in 2022. However electrical automobile (EV) gross sales grew by a stunning 65%, in accordance with Kelley Blue E book dad or mum firm Cox Automotive.

Totally 5.8% of the brand new automobiles People purchased have been electrical, up from 3.2% in 2021. Whole EV gross sales topped 800,000 for the primary time.

At the very least one examine has recommended that 5% is a tipping level, after which gross sales pace up.

Cox Automotive is forecasting 1 million EV gross sales within the U.S. for the primary time in 2023, which can push EV share increased. With new government-backed incentives and recent merchandise set to launch, passing 1 million is all however assured.

Because the pie grows, the market chief’s piece of it’s shrinking. Tesla’s market share was greater than 70% within the first quarter of 2022. It fell to 58.3% within the fourth quarter.

Tesla faces considerably extra competitors than ever earlier than. Practically each automaker now presents an electrical automotive. Rival EVs often seize reward and headlines. Final week, as an illustration, the Kia EV6 gained the 2023 North American Utility Car of the 12 months award, whereas the Ford F-150 Lightning gained 2023 North American Truck of the 12 months.

EV costs stay properly above the value of the common new automotive. However the two strains on the graph are on a path to fulfill.

The value of the common new automotive rose final month, ending 2022 at $49,507. The value of the common EV fell 5.5%, ending the 12 months at $61,448. That continues to be excessive however is now decrease than the price of the common luxurious automotive, which stood at $66,660 in December.