- New EV sales dropped sharply year over year in Feb, but rose slightly versus Jan.
- Used EV demand surged as prices fell and inventory tightened across the market.
- Tesla still dominates, though rivals gained ground with strong February showing.
The war in Iran and resulting gas price spike might be making American drivers suddenly more interested in new EVs, but that’s obviously not reflected in February’s sales figures.
Data shows new EV sales came in just under 69,000 units last month, which sounds healthy until you notice that’s down a hefty 27 percent compared to last year. That total still marked a 5.8 percent increase compared to January and represented about 5.8 percent of all new vehicle sales.
There is a silver lining though, and it’s that those people who did buy an EV paid less for it as prices were pushed down across the board, Cox Automotive says.
More: Global EV Sales Just Fell 11%, But Carmakers Found A Surprising Backup Plan
New EVs averaged around $55,300, dipping slightly from last year and narrowing the price gap with gas cars to its lowest ever. Incentives are doing a lot of work here, now making up more than 14 percent of the average transaction price.
On average, incentives climbed to about $7,870 per vehicle, a clear sign automakers are relying heavily on discounts to keep buyers interested.
Tesla still leads the pack by a mile, shifting around 38,500 units, but even the world’s most famous EV company isn’t immune to gravity. Its share slipped 4 percent month over month as rivals started clawing back some ground.
Chevrolet had a particularly strong month, demand jumping 70 percent versus January, and Hyundai and Toyota also nudged forward, while Ford and Nissan’s performances suffered, as did EV sales overall.
Used Sales Head In The Opposite Direction
Meanwhile, the used EV market is quietly having a moment. Sales jumped nearly 29 percent year over year, with almost 31,000 units finding new homes. That’s not explosive growth, but it does show buyers are warming to second-hand electric cars, especially as prices keep sliding.
That figure also reflects a modest 4.2 percent increase from January, pointing to steady month-over-month momentum.
We’ve already touched on the falling prices of new EVs, but prices for used ones are dropping even faster, and now average just under $35,000. That’s down more than 8 percent year over year, making them far more tempting for budget-minded buyers. In fact, many used EVs now cost less than their gas powered equivalents, which would’ve sounded wild not long ago.
The report also explains that inventory is tightening, especially for used EVs, suggesting demand is finally starting to match supply as the market shifts from the oversupply headaches of recent months. But while Cox Automotive experts didn’t explicitly say that could lead to prices rising, simple supply and demand laws suggest to us they might.
In fact, used EV supply dropped to about 42 days, now slightly exceeding comparable gas vehicle levels for the first time in nearly a year.
