The top five selling new EV models, ranked by sales volume, were the Tesla Model Y, Model 3, Volkswagen ID.4, Tesla Cybertruck, and Honda Prologue, making up 54% of total EV sales for the month.
The electric vehicle market thrived across new and used segments in January with robust sales and pricing amid declining days’ supply.
Propelled by continuing consumer interest, the used EV market grew, driven by affordability and more model options. Days’ supply and average transaction prices (ATPs) further highlighted the shifting landscape of the EV market.
EV Sales Up at a Healthy Clip
New EV Sales: In January, new electric vehicle sales volume reached 102,243 units, up 30% year over year. January marked the 10th consecutive month with over 100,000 units sold. Following a record month in December, when U.S. EV sales reached the highest level ever, a month-over-month sales decline was expected. The top five selling models, ranked by sales volume, were the Tesla Model Y, Model 3, Volkswagen ID.4, Tesla Cybertruck, and Honda Prologue, making up 54% of total EV sales for the month. Volkswagen ID.4 had a comeback month, with sales up 653% to reach 4,979 vehicles.
Used EV Sales: Used electric vehicle sales increased by 3.5%, reaching 26,933 units, marking the second-highest volume. This represents a 30.5% year-over-year growth and a market share of 1.8%. The top five selling brands, ranked by sales volume, were Tesla, Chevrolet, Mercedes-Benz, Ford, and Nissan, with Mercedes-Benz showing a 54% month-over-month increase in volume. The top-selling models were the Tesla Model 3, Model Y, Model S, Chevrolet Bolt, and Ford Mustang Mach-E.
Yearly Days’ Supply Tightens
New EV Days’ Supply: In January, the new EV days’ supply increased by 5.3% month over month, reaching 87 days. Despite this rise, it remains below the days’ supply for internal combustion engine (ICE) vehicles. Year over year, the supply of new EV days is down 35.1%, indicating a big improvement in inventory turnover compared to the previous year. Volkswagen experienced the largest decline, while Lexus saw the largest increase in days’ supply month over month.
Used EV Days’ Supply: The supply of used electric vehicles continued to tighten to 45 days’ supply, decreasing by 3% month over month and 23.3% year over year. This high demand is possibly driven by factors such as the affordability of used EVs, the availability of tax incentives for many models, and more consumers realizing that EVs can meet daily driving needs. Additionally, many used EVs come with battery warranties, providing extra peace of mind for buyers.
Incentive spending on EVs decreased by 3.1% compared to December but was higher by 48.6% year over year.
EV Prices Hold Straddle Steady Levels
New EV Average Transaction Price: In January, the average transaction price (ATP) for new electric vehicles was $55,614, a 0.9% increase from the previous month and a 1.4% decrease from the previous year. Incentive spending on EVs decreased by 3.1% compared to December but was higher by 48.6% year over year. The manufacturers with the highest incentive levels were Volkswagen, Subaru, Kia, and Nissan – with an average of 36.2% of ATP.
Used EV Average Listing Price: The average listing price for used electric vehicles was $37,476, showing a 1.7% increase month over month and a 5.1% decrease year over year. Ten brands (Porsche, Toyota, Chevrolet, Jaguar, Mazda, Volvo, Mini, Lexus, Nissan, and Subaru) had listing prices at or below those of their internal combustion engine (ICE+) models. Additionally, 39.4% of units sold were priced under $25,000.
