In a recent release of data by S&P Global Mobility, November 2023 showcased some unexpected trends in new electric vehicle (EV) registrations in the United States. While industry leaders Tesla and Ford experienced modest gains, smaller players like Rivian and Kia, along with luxury brands Mercedes and BMW, made significant strides.
Tesla’s Modest Growth and Ford’s Rise
According to Automotive News, Tesla, maintaining its position as the year’s EV leader, saw an 8.6% growth in new registrations for November 2023 compared to the same month in the previous year. Despite this growth, Tesla’s market share dipped from 57.1% in November 2022 to 47.7%. Ford, however, secured the second position with a 21% increase in new EV registrations, totaling 7,787 for the month.
Chevrolet’s Challenge and Model Y’s Surge
Chevrolet faced a slight setback with a 0.2% decrease in EV registrations, totaling 4,172 and claiming a 4.7% share for November 2023. On the contrary, Tesla’s Model Y recorded an impressive 77% jump in registrations from January to November 2023, reaching 342,512. The Model 3 also experienced a 12% increase, with 194,087 registrations during the same period.
Record EV Sales in 2023
Cox Automotive estimates that a record-breaking 1.2 million EVs were sold in the United States in 2023, constituting a 7.6% share of the light-vehicle market. This marked an increase from 5.9% in 2022, and Cox anticipates the EV market share to jump to 10% in 2024.
Rivian’s Remarkable Growth and Kia’s Surge
Rivian, the American EV manufacturer, witnessed an astounding 146% gain in new registrations, totaling 6,512 in November 2023. This significant growth allowed Rivian to capture 7.3% of the EV segment that month. Kia, the South Korean automaker, doubled its EV registrations to 2,278, claiming a 2.5% market share in November. Hyundai, Kia’s sister brand, also experienced growth, gaining 3,678 registrations for a 4.1% market share.
Luxury Brands: BMW and Mercedes Impress
German luxury brands BMW and Mercedes demonstrated noteworthy performances in the EV segment. BMW saw a 42% increase in new-vehicle registrations in November 2023, totaling 4,046 vehicles and claiming a 4.5% share. Mercedes-Benz experienced a remarkable 160% rise in new-vehicle registrations, reaching 3,688 vehicles for a 4.1% share of the EV segment.
Market Dynamics and the Road Ahead
As the EV landscape continues to evolve, industry analysts predict exciting developments in the coming quarters. While Tesla and Ford maintain their positions, smaller players like Rivian and Kia capitalize on changing consumer preferences. The data also suggests a potential shift among high-end EV buyers, exploring alternatives beyond Tesla.
However, industry experts caution that the automotive sector’s slow pace could introduce unforeseen variables. Luxury brands from Germany, traditionally losing market share to Tesla, might be signaling a change in buyer preferences. Additionally, potential headwinds for Tesla, including reduced gains from price cuts and Ford’s production adjustments, could create opportunities for emerging players.
As the electric vehicle market expands, keeping an eye on these shifting dynamics will provide valuable insights into the future of automotive electrification. The next few quarters promise excitement, and analysts encourage stakeholders to stay prepared for unexpected developments.
Insurance Rate Increases Raise Questions
In a related development, electric vehicle owners are experiencing notable increases in insurance rates. Reports indicate that a Rivian owner with coverage from Nationwide saw a substantial 25% rise (+$700) in the next coverage period, despite a clean claims record. Similar trends are reported across insurers, with GEICO selling a comparable policy for $3,700, and Progressive expressing challenges in offering a policy. As electric vehicle ownership rises, understanding and addressing these insurance dynamics will become increasingly critical for both owners and insurers alike.
US EV Registrations in November 2023
| Brand | November Registrations | Year-over-Year Change | Market Share |
|---|---|---|---|
| Tesla | 42,737 | 8.6% | 47.7% |
| Ford | 7,787 | 21% | 8.7% |
| Chevrolet | 4,172 | -0.2% | 4.7% |
| Rivian | 6,512 | 146% | 7.3% |
| Kia | 2,227 | 100% | 2.5% |
| Hyundai | 3,678 | 35% | 4.1% |
| BMW | 4,046 | 42% | 4.5% |
| Mercedes-Benz | 3,688 | 160% | 4.1% |
Notes:
- Tesla remains the leader in EV registrations, but its market share has dipped slightly.
- Ford and Chevrolet saw modest year-over-year growth.
- Rivian, Kia, Hyundai, BMW, and Mercedes-Benz all experienced significant increases in registrations.
- The Chevy Bolt and Ford Mustang Mach-E both saw strong growth in 2023.
- Cox Automotive estimates that EVs had a 7.6% share of the US light-vehicle market in 2023 and expects that share to increase to 10% in 2024.
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