Electric vehicle sales in January 2023 made up 7.1% of car sales, a jump from 4.3% during the same time period last year, InsideEVs reports. Total car sales, gas and electric, remained on-par with the past two years, which means EV sales continue to take an even greater market in the automotive industry.

According to the registration data from Experian (via Automotive News), 87,708 out of 1.24 million new light vehicles registered in January were EVs. That equals 7.1% and a 74 percent increase year-over-year, compared to a 4.3 percent share in January 2022.

As of January 1, 2023, the Inflation Reduction Act of 2022 (IRA) revived the $7.500 federal tax credit eligibility for Tesla and General Motors.

How did that translate to sales for each OEM?

Inside EVs broke down BEV registrations for January 2023:

  • Tesla – 49,917 (up 34% from 37,128) and 57% share (down form 74% a year ago)
  • Chevrolet – 8.5% share
  • Ford – 7.7% share
  • Volkswagen – 4.6% share
  • Hyundai – 3% share
  • BMW – 2,558 and 2.9% share
  • Rivian – 2.6% share
  • Mercedes-Benz – 2,142 and 2.4% share

Tesla remains the most important EV manufacturer in the US, with nearly 50,000 units in January and a 57 percent share, although its growth rate of 34 percent is much lower than the segment’s average. In January 2022, Tesla had a 74 percent share.

The top two most popular vehicles in January were the Tesla Model Y, with 28,833 new registrations, and the Tesla Model 3, at 17,526. Both sold more units than in January 2022, thanks to some steep price cuts in mid-January 2023.

The price of a Model Y dropped $13,000, from $65,990 to $52,990, while the Model 3 got a $3,000 reduction. This particularly affected sales on the Model Y, which jumped 56% year over year, as the vehicle now falls below the $55,000 federal limit for sedans to qualify for the federal tax credit. (Tesla has since raised the price back up slightly to $54,990 as of this writing.)

Tesla also gained ground in January in the luxury segment, growing 34% and surpassing competitors like BMW, Experian reported:

  • Tesla – 49,917 (up 34.0% from 37,128)
  • BMW: 31,070 (up 2.5%)
  • Mercedes-Benz: 23,345 (up 7.3%)
  • Lexus: 23,082 (down 6.6%)
  • Audi: 19,113 (up 38.0%)

For all of 2022, EV sales equaled 5.8% of all new car sales in the US and 10% globally, according to the Wall Street Journal. A significant jump from 2021, but it is no Norway – official numbers published this week have revealed that 83.7% of all new cars sold across Norway in January were electric vehicles, with 19 of the top 20 vehicles coming with a cable.

We have a long way to go, but progress is progress. For now we will gladly take EV car sales setting a new record.