Figure 19. Electric Vehicle Registration and as Percent of Total New Light Vehicle Registration

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Figure 19. Electric Vehicle Registration and as Percent of Total New Light Vehicle Registration

Source: AutoCount data from Experian; California New Car Dealers Association Analysis by CEC Economics

In 2023, battery electric vehicle (BEV) registrations totaled about 380,000 vehicles, which represents a significant increase of 46.0% compared to the 260,000 vehicles registered the previous year. 2023 sales alone were more than the combined sales from 2014 to 2019, when a total of 371,000 BEVs were registered.
After suffering slumping sales in 2022, plug-in hybrid electric vehicles (PHEV) increased in 2023 by an equally impressive 40.1%. Californians registered just a hair under 60,000 new PHEVs, the highest figure since 2018, when new PHEV registrations peaked with 64,600 vehicles. Compared to BEVs, the market share of PHEVs is modest, making up just 3.4% of new vehicle registrations in 2023. Hybrid and plug-in hybrid vehicles have twice the raw material cost vulnerability to supply chain disruptions.⁴³ The higher registrations in BEVs denotes that there is a growing segment of consumers who prioritize fully electric, zero-emission vehicles over PHEVs.

⁴³ American Chemical Society. Hybrid cars are twice as vulnerable to supply chain issues as gas-powered models. July 28, 2021. Accessed August 24, 2024. Available at: https://www.acs.org/pressroom/presspacs/2021/acs-presspac-july-28-2021/hybrid-cars-are-twice-as-vulnerable-to-supply-chain-issues-as-gas-powered-models.html

Adequate supplies of batteries and the requisite materials will be crucial for continued EV adoption. To that end, the Inflation Reduction Act (IRA), which became law in August 2022, provides new incentives for domestic battery manufacturing. Since its passage, the IRA has spurred $95 billion (and counting) in private investment of batteries and EVs.⁴⁴