Electric vehicle sales and demand are thriving in California, despite stalling in other parts of the US. According to the California New Car Dealers Association (CNCDA), pure battery electric vehicle (BEV) sales accounted for 21.5% of sales in the state during the first nine months of the year, reaching 22.3% in Q3. This marks a significant increase from the previous year, where BEV sales only accounted for 16.4% year-to-date and 9.1% in 2021.
When hybrid and hydrogen fuel-cell vehicles are included, the figure rises to 35.4% of all vehicles sold year-to-date in California. Notably, this means that sales of gasoline-powered vehicles are declining, with the CNCDA reporting a decrease in ICE market share (including gasoline and diesel vehicles) from 71.6% in 2022 to 64.6% so far this year, and a sharp decline from 88.4% in 2018.
California is known as a trendsetter in the automotive industry, often setting the stage for shifts in preferences and government policies that eventually spread throughout the country. While California’s BEV market share surpasses one-fifth of all vehicles sold year-to-date, the figure for the entire US stands at 7.4%. It should be noted that the state’s regulatory agencies have already banned the sale of gas-powered vehicles starting in 2035.
Unsurprisingly, when examining the sales data more closely, Tesla’s Model Y and Model 3 dominate the BEV market in California, with sales of 103,398 and 66,698 respectively. Tesla’s overall market share for BEV sales reaches an impressive 62.9%. In fact, the Tesla Model Y is the top-selling vehicle overall in California, followed by the Model 3, the Toyota RAV4 (40,622), and the Toyota Camry (39,293).
Although this is positive news for Tesla, its overall market share has seen a slight decline from 71.8% year-to-date from the previous year. Other BEV brands such as Chevrolet, BMW, Mercedes, and Hyundai have been gradually eating into Tesla’s market share.
Toyota remains the sales leader in the state with a 15% overall market share, closely followed by Tesla at 13.5%. Interestingly, Tesla briefly surpassed Toyota in sales in the state during Q2, only to be overtaken by Toyota again in Q3.
That being said, Tesla’s sales in California have grown by 38.5% year to date, while Toyota’s sales have actually decreased by 0.7%. Only time will tell if Tesla can regain popularity among California car buyers and surpass Toyota for the top spot in 2023, or if other EV manufacturers can offer more competitive products to attract California’s EV enthusiasts away from Tesla.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.
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