Hybrid and electric vehicles captured a larger share of the U.S. light-duty vehicle market in 2023, but gasoline-powered vehicles continue to dominate sales.

Hybrids, plug-in hybrids and battery electric vehicles made up 16.3% of new LDV sales last year, an increase from 12.9% the year before, the Energy Information Administration said Wednesday, quoting data from Wards Intelligence.

Sales of the non-ICE vehicles were even stronger during the second half of the year, making up 17.9% of the market, according to EIA.

EIA attributed the rise in non-ICE LDV vehicles to a variety of factors, including government incentives and falling prices. The average price for BEVs was $50,798 in December, a 24.2% decline from the price peak seen in the second quarter of 2022.

Much of that price decline was the result of price cuts by Tesla, with the average transaction price for the company's vehicles falling 29% between June 2022 and December 2023, EIA said.

Meanwhile, the overall average LDV price rose by 1.5%, bringing EVs more in line with average ICE vehicle prices. EV prices averaged $2,000 above the overall average at the end of last year, compared to $19,000 in June 2022, EIA said.

Still, EVs tend to be among the higher priced vehicles, with luxury vehicles making up 80% of BEV sales. BEV sales made up 31.3% of the total luxury vehicle market last year, according to EIA.

Although excluded from government credits, hybrids increased in popularity, with sales rising 53% in 2023, compared to a combined 1% increase in deliveries of plug-in hybrids and battery electric vehicles, according to Wards. Plug-in hybrid EVs saw sales rise 103% in December, the company said.

However, Wards forecast that with more BEV models expected to be available this year, sales of electric-only vehicles will overtake hybrids.

This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.

--Reporting by Steve Cronin, scronin@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com


(END) Dow Jones Newswires

01-31-24 1219ET