Data Source: AutoCount data from Experian, California New Car Dealers Association.
Analysis by CEC Economics
Highlights
- In 2024, new battery electric vehicle (BEV) registrations totaled about 387,000 vehicles, a mere 1.2% growth from the 383,000 new vehicles registered the previous year. This may be due to the rapid growth in new BEV sales in 2023, which pulled forward some of the demand that would have otherwise occurred in 2024. Another plausible explanation for the slowdown may be that automobile manufacturers are pushing back their timeline for increasing EV production due to economic and political factors.42
- New registrations of plug-in hybrid electric vehicles (PHEV) grew by 2.2% in 2024 relative to 2023. Californians registered slightly over 60,000 new PHEVs, the highest figure since 2018, when new PHEV registrations peaked with 64,600 vehicles. While the market share of PHEVs is modest, making up just 3.5% of new vehicle registrations in 2024, this is the highest market share thus far.
42 Dan Gearino, “When Will the EV Sales Slump End? Here’s What the Experts Say.” Inside Climate News. September 12, 2024. Available at: https://insideclimatenews.org/news/12092024/inside-clean-energy-ev-sales-slump/
Challenge
- Adequate supplies of batteries and the requisite materials will be crucial for continued EV adoption. The Inflation Reduction Act (IRA), which became law in August 2022, spurred a renaissance for domestic clean energy manufacturing including batteries. Unfortunately, the Trump Administration’s outlook on electric vehicles and clean energy has jeopardized the momentum to onshore domestic manufacturing. In just the first five months of 2025, a known $676 million of investments in EV manufacturing facilities was lost due to factory cancellation, closure, or downsizing—representing a jump of 270% compared to 2024’s known lost investment of $183 million.43
43 E2. “Businesses Cancel $1.4 Billion In New Factories, Energy Projects in May as Congress Pushes Forward on Tax Increases.” June 23, 2025. Accessed July 3, 2025. Available at: https://e2.org/releases/may-25-clean-economy-works/
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