California says electric cars now make up fifth of auto sales

In the first nine months of 2023, electric vehicles accounted for 21.5% of cars sold in the state.

By Dana Hull | Bloomberg

One out of every five cars sold in California is now powered by a battery, registration data released Wednesday by the California New Car Dealers Association shows.

In the first nine months of 2023, electric vehicles accounted for 21.5% of cars sold in California, a figure that’s more than doubled in the past two years. When combined with hybrid, plug-in hybrid and fuel-cell vehicles, the year-to-date figure is 35.4%.

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California has long been a champion of electric cars, and Governor Gavin Newsom said he’ll phase out sales of new, gasoline-powered cars by 2035 as part of the state’s fight against climate change. Elon Musk’s Tesla Inc. was founded in the state, and the EV adoption curve has accelerated faster in California than in other parts of the country.

Battery-powered cars make up only 7.4% of the overall US auto market, the California report said.

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That’s helped the state defy some of the gloom now facing the broader EV market. Both Tesla and conventional automakers have said they’ll slow their investments in battery-powered cars for now, warning that high interest rates and prices are affecting demand.

Tesla’s lead in the California electric-vehicle market has slipped this year, according to the state registration data. Its overall market share fell to 62.9% in the first nine months of 2023, compared to its 71.8% share the year before. Mercedes-Benz Group AG and BMW both gained ground among EV sellers.

Gasoline- and diesel-powered vehicles known as ICE, for their internal combustion engines, made up 62.3% of new vehicle registrations in California during the period. That’s a drop from 71.6% in 2022.

Toyota Motor Corp. remains the best-selling brand in California overall, with 15% market share year to date. Tesla is second with 13.5% thanks to strong sales of the Model Y.