While new vehicle sales fell 13.4% year-over-year in the third quarter mainly due to low inventories and high prices, sales of electrified vehicles jumped nearly 60%, according to an analysis by Kelley Blue Book published on October 20. In fact, over a million electrified vehicles have been sold to date in 2021.
Sales of electrified vehicles – the combined total of electric vehicles (EVs), hybrids and plug-in hybrids – accounted for 10.4% of total vehicle sales in the third quarter, according to Kelley Blue Book, an all-time high. During the same period a year ago, electrified vehicles only accounted for 5.5% of total sales.
The growth in sales of electrified vehicles in the United States is the result of greater product availability and wider consumer acceptance. For the most part, two companies are in charge of electrified vehicles: Tesla and Toyota.
On the electric vehicle front, new players including the Ford Mustang Mach-E and VW ID.4 are enjoying early success, but the Tesla Model 3 and Model Y are still the main players. In total, Tesla’s share of the electric vehicle market in the third quarter returned to above 70% after falling to 64% in the second quarter. The Tesla Model Y is the best-selling electric vehicle in the industry, accounting for almost 40% of total electric vehicle sales.
Toyota has long dominated the hybrid powertrain market and its leadership today is unquestionable. In the first nine months of 2021, over 24% of Toyota and Lexus combined sales were of hybrid vehicles. More than 60% of all hybrid electric vehicles sold across the industry in the third quarter came from Toyota Motor Company, a position almost as dominant as Tesla.
As we enter the fourth quarter, tight inventories and high prices continue to be the central story of the new vehicle market. However, the growth of electrified vehicles should not be overlooked. At the end of September, more than a million electrified vehicles had been sold in the United States, double the cumulative volume in 2020. In the third quarter, 1 in 10 vehicles sold were equipped with a large battery pack. We have now firmly entered an electrified decade in which battery technology will play a key role in the development of the industry and, ultimately, consumer satisfaction.
Originally posted on Re-marketing of vehicles