U.S: yearly plug-in hybrid electric vehicle sales 2011-2023

The United States witnessed a surge in plug-in hybrid electric vehicle (PHEV) sales in 2023, with a record-breaking 293,815 units sold. This marked a significant increase of 60.2 percent compared to the previous year, surpassing the quarter-million threshold for the first time. The growth in PHEV sales aligns with the broader trend of increasing electric vehicle adoption in the U.S. market.

Electric vehicle market share gains momentum

While PHEVs experienced substantial growth, battery-electric vehicles (BEVs) have been driving the overall increase in electric vehicle market share. In December 2023, plug-in electric vehicles accounted for over 11 percent of the U.S. light vehicle market, with BEVs contributing 8.3 percent of that share. The 2023 calendar year saw BEV sales reach 1.2 million units, representing a 55.4 percent year-over-year increase. This growth indicates a shifting consumer preference towards electric vehicles, although the U.S. still lags behind Europe and Asia in EV adoption

Challenges and opportunities in the U.S. automotive landscape

Despite the rise in electric vehicle sales, traditional automakers continue to dominate the U.S. market. Ford remained the leading car brand in 2023, delivering approximately 1.9 million vehicles. However, the automotive industry faces challenges such as semiconductor shortages, worker strikes, layoffs, and increased competition. The U.S. auto market sold nearly 12.4 million light trucks in 2023, which was the first year when sales fully recovered from the pandemic-induced downturn. As the industry evolves, manufacturers are adapting to changing consumer preferences, with light trucks gaining popularity over passenger cars in recent years.