In January, the electric vehicle market experienced revealing trends across both new and used segments. While new EV sales saw a decline in volume, market share reached a record high, reflecting sustained consumer interest. Meanwhile, the used EV market continued to grow, driven by affordability and more model options. Inventory dynamics, including days’ supply and average transaction prices, further highlighted the evolving landscape of the EV market.

New and Used EV Sales – January

New EV Sales: In January, new electric vehicle sales volume reached 102,243 units, up 29.9% year over year. January marked the tenth consecutive month with over 100,000 units sold. Following a record month in December, when U.S. EV sales reached the highest level ever, a month-over-month sales decline was expected. The top five selling models, ranked by sales volume, were the Tesla Model Y, Model 3, Volkswagen ID.4, Tesla Cybertruck, and Honda Prologue, together making up 54% of total EV sales for the month. Volkswagen ID.4 had a comeback month, with sales up 653% to reach 4,979 units.

Used EV Sales: In January, used electric vehicle sales increased by 3.5%, reaching 26,933 units, marking the second-highest volume. This represents a 30.5% year-over-year growth and a market share of 1.8%. The top five selling brands, ranked by sales volume, were Tesla, Chevrolet, Mercedes-Benz, Ford, and Nissan, with Mercedes-Benz showing a 54% month-over-month increase in volume. The top-selling models were the Tesla Model 3, Model Y, Model S, Chevrolet Bolt, and Ford Mustang Mach-E.

New and Used EV Days’ Supply – January

New EV Days’ Supply: In January, the new EV days’ supply increased by 5.3% month over month, reaching 87 days. Despite this rise, it remains below the days’ supply for internal combustion engine (ICE) vehicles. Year over year, the new EV days’ supply is down 35.1%, indicating a significant improvement in inventory turnover compared to the previous year. Volkswagen experienced the largest decline, while Lexus saw the largest increase in days’ supply month over month.

Used EV Days’ Supply: The supply of used electric vehicles continued to tighten to 45 days’ supply, decreasing by 3.0% month over month and 23.3% year over year. This high demand is possibly driven by factors such as the affordability of used EVs, the availability of tax incentives for many models, and the realization that EVs can meet everyday driving needs. Additionally, many used EVs come with battery warranties, providing extra peace of mind for buyers.

New and Used EV Prices – January

New EV Average Transaction Price: In January, the average transaction price (ATP) for new electric vehicles was $55,614, marking a 0.9% increase from the previous month and a 1.4% decrease from the previous year. Incentive spending on EVs decreased by 3.1% compared to December but was higher by 48.6% year over year. The makes with the highest incentive levels were Volkswagen, Subaru, Kia, and Nissan – with an average of 36.2% of ATP.

Used EV Average Listing Price: The average listing price for used electric vehicles was $37,476, showing a 1.7% increase month over month and a 5.1% decrease year over year. Ten brands (Porsche, Toyota, Chevrolet, Jaguar, Mazda, Volvo, Mini, Lexus, Nissan, and Subaru) had listing prices at or below those of their internal combustion engine (ICE+) models. Additionally, 39.4% of units sold were priced under $25,000.

The EV Market Monitor gauges the health of the new and used electric vehicle (EV) markets by monitoring sales volume, days’ supply and average pricing. Each metric will be measured month over month and year over year. For a detailed new-EV sales report, see the Q4 Electric Vehicle Report, the official quarterly report of EV data.