Source: IHS Automotive, California New Car Dealers Association; Analysis by Beacon Economics
Note: New light vehicles only and does not include used vehicles and vehicles coming off lease. Cars include subcompact, compact, mid-size, large sedans and sports cars. Light trucks include pickup trucks, mini vans, large vans, and SUVs.
Analysis by Beacon Economics
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- In 2022, light-duty pickup trucks, mini-vans, and SUVs made up 68.5 percent of new light vehicle registrations—up from 66.4 percent in 2021. However, overall total new light vehicle registrations declined by 10.2 percent from 2021 to 2022 as a result of supply chain issues and the significant cutback in vehicle production.76 In fact, total vehicle registrations in California also declined by 0.7 percent from 2021 to 2022, and nationally, new vehicle registrations fell by 7.9 percent in 2021. Consumer preferences continue to favor pickup trucks, mini-vans, and SUVS, as the car registrations dropped more (-16.1%) than light truck registrations (-9.1%). Furthermore, total light truck registrations have increased to 1.2 times the number of car registrations, 97.2 percent more new light trucks registrations than new car registrations observed in 2021. The share of newly registered light trucks has reached its highest level since 2013, currently standing at 68.5 percent. This upward trajectory has been consistent, reflecting a steady climb.
- Battery electric vehicle registrations in all classes rose by 61.7 percent from 2021 to 2022. This is a significant increase, yet less than the 73.5 percent increase observed from 2020 to 2021. Between 2019 and 2022, the market share of light trucks witnessed a notable increase of 10.1 percentage points. This growth occurred despite a simultaneous decrease of 80,606 units in light truck registrations, attributed to the overall decline in total vehicle registrations in 2022. There was also a significant 344,736-unit decline in traditional car registrations, which represents a 425,342-unit drop in total registrations. The car-light trucks difference widened to 264,130 units and there have been substantial shifts in electric vehicle adoption, including a 178,447-unit increase in battery electric vehicle (BEV) registrations, a 2,294-unit decrease in plug-in hybrid electric vehicle (PHEV) registrations. This represents an 11 percentage point reduction in car share, a 12 percentage point increase in BEV share, a 0.5 percentage point increase in PHEV share, and a 12.5 percentage point rise in the market share of electric vehicles.
- Although the growth in registrations was lower than in 2021, the market share of EVs increased to 20.1 percent in 2022, compared to 12.8 percent of total new registrations in 2021. Additionally, the 18.3 percent reduction in registrations of plug-in hybrid electric vehicles (PHEVs), compared to 2021, is likely a contributing factor to the comparatively smaller growth observed in overall electric vehicle (EV) registrations, due to supply chain issues. In fact, the Biden administration announced $192 million to strengthen the global standing of the U.S. EV market, including fastening self-made manufacturing development such as lithium-ion batteries that might cause supply-chain blockage.77
76 California New Car Dealers Association. California Auto Outlook. February 2023. Assessed July 18, 2023. Available at: https://www.cncda.org/wp-content/uploads/Cal-Covering-4Q-22_FINAL.pdf
77 Energy.gov. Biden-Harris Administration Announces $192 Million to Advance Battery Recycling Technology. June 12, 2023. Assessed July 18, 2023. Available at: https://www.energy.gov/articles/biden-harris-administration-announces-192-million-advance-battery-recycling-technology
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