(iSeeCars) – The number of traditional non-Tesla new car dealers selling electric vehicles has more than tripled in the past three years. Between November 2020 and November 2023, the percentage of dealers selling new EVs increased from 16.5% to 55.1%. Used car dealers selling EVs have not seen much growth, but their number has also increased dramatically, increasing from 17.1% to 29.4% in the same three years.
iSeeCars analyzed the inventory of more than 82,000 new and used car dealers from November 2020 to November 2023. The percentage of dealers that sold at least one EV each month was compiled nationally, by state, and by metropolitan area.
New and used car dealers are also joining the transition to EVs
Three years ago, most car brands didn’t offer electric cars, so the number of new dealers competing with Tesla was limited. However, as more traditional automakers produce new EVs, the number of new EV dealers has increased, especially from 2022 to 2023. This increase in brands offering new EVs is now moving into the used market, and participation from used EV dealers should skyrocket similar to last year. Next 2-3 years.
“The number of new car dealers selling electric cars outside of Tesla’s network has been on the rise over the past three years, with the largest growth occurring only in the past 12 months,” said Karl Brauer, executive analyst at iSeeCars. Ta. “This will increase pressure on Tesla’s sales and market share. Used car dealers are also entering the EV market, which is growing by more than 70% compared to three years ago.”
Percentage of dealers selling EVs*: November 2020 to 2023 – iSeeCars survey | ||
Year | Percentage of new car dealers | Percentage of used car dealers |
2020 | 16.5% | 17.1% |
2021 | 25.8% | 18.0% |
2022 | 34.7% | 27.0% |
2023 | 55.1% | 29.4% |
*Excludes Tesla dealers.
Despite the recent increase in the number of new car dealers selling electric cars, approximately half (44.9%) still do not sell electric cars. Part of that is due to dealers being unable to sell EVs because auto brands don’t offer them yet.
For brands that have at least one electric model, 73.5 percent of new car dealers offer an electric model, a high but still not 100 percent percentage that discourages dealers from selling EVs. This suggests that there are other factors. Regarding used cars, as of November 2023, more than 70% of dealers were not selling used EVs.
“After analyzing market data, we found that EV sales have been slowing in recent months,” Brauer said. “Current market conditions, including rising interest rates and concerns about the general economy, are reducing demand for electric vehicles and may cause some dealers to avoid retailing electric vehicles.”
Most major dealers sell EVs, most small dealers do not
A dealer’s inventory size has a clear relationship with the dealer’s likelihood of handling EVs. Small Dream’s participation in EVs has increased rapidly over the past three years, but it still lags far behind larger dealers.
Percentage of new car dealers selling EVs (by dealer size*) – iSeeCars survey | ||
Monthly new car sales | November 2023 | November 2020 |
10~50 | 34.1% | 5.2% |
51 – 100 | 54.6% | 11.3% |
101 – 500 | 67.4% | 19.5% |
501 – 1000 | 73.9% | 21.8% |
1001+ | 87.2% | 35.2% |
*Excluding Tesla dealers.
Percentage of used car dealers selling EVs (by dealer size)* – iSeeCars survey | ||
Monthly used car sales volume | November 2023 | November 2020 |
10~50 | 9.6% | 5.7% |
51 – 100 | 26.7% | 12.4% |
101 – 500 | 53.9% | 25.6% |
501 – 1000 | 89.3% | 56.7% |
1001+ | 96.2% | 76.5% |
*Excluding Tesla dealers.
“To sell new or used electric vehicles, dealers must understand electric vehicles, train their sales and service staff on electric vehicles, and conduct on-site work to keep EVs charged and ready for customer use. We need to invest in charging,” Brauer said. “It’s clear that smaller dealers are not yet willing to make financial commitments, especially in markets where EV sales are not growing as quickly as they did a year ago.”
EV market share other than Tesla is expanding explosively
The EV market share of non-Tesla models has more than doubled every year since 2020. Currently, non-Tesla EVs account for about half of all new EV sales in the United States. The share of the used EV market has more than tripled in the past three years.
EV Market Share: November – iSeeCars Survey | ||
Year | New EV market share* | Used EV market share down 1-5 years** |
2020 | 0.5% | 0.6% |
2021 | 1.0% | 0.7% |
2022 | 2.3% | 1.1% |
2023 | 4.7% | 1.9% |
*Excluding Tesla. **Includes Tesla Cars, but excludes Tesla dealers.
“Watch for used EV share to skyrocket as all these new models enter the used market,” Brauer said. “The Inflation Control Act provides incentives of up to $4,000 for used EVs, which will increase demand and market activity.”
Delaware, Rhode Island, and Hawaii lead in EV dealers, while Montana and Wyoming lag behind.
California has the highest share of the new EV market, while Delaware, Rhode Island, Hawaii, and Maine have a higher percentage of auto dealers offering new EVs. Montana, Wyoming, and Mississippi have the lowest percentage of new EV dealers.
Top 10 and Bottom 10 States by Percentage of New Car Dealers Selling EVs*: November 2023 – iSeeCars Survey | |||
rank | state | Percentage of new car dealers selling EVs | New EV market share |
1 | Delaware | 81.8% | 2.9% |
2 | rhode island | 75.0% | 3.9% |
3 | Hawaii | 71.4% | 8.3% |
Four | maine | 68.8% | 4.2% |
Five | California | 65.3% | 12.2% |
6 | south dakota | 64.7% | 1.6% |
7 | new mexico | 63.8% | 4.2% |
8 | Oregon | 63.3% | 7.8% |
9 | nebraska | 63.2% | 3.8% |
Ten | connecticut | 62.6% | 4.2% |
– | |||
39 | texas | 48.4% | 3.5% |
40 | iowa | 47.9% | 2.3% |
41 | oklahoma | 45.8% | 2.0% |
42 | kentucky | 44.7% | 2.3% |
43 | arkansas | 42.5% | 2.1% |
44 | idaho | 40.7% | 3.4% |
45 | louisiana | 39.0% | 1.8% |
46 | mississippi | 38.2% | 1.8% |
47 | wyoming | 35.0% | 2.8% |
48 | montana | 23.1% | 2.8% |
*Excluding Tesla dealers. Insufficient new car dealership data for Alaska and North Dakota.
“Even in states with the highest electric vehicle market shares, such as California and Oregon, dealer participation is not close to 100%,” Brauer said.
Idaho and Montana go from zero to hero with new EV dealerships
In Idaho and Montana, there were no signs of new car dealer participation in EVs as of November 2020, but the percentage of new dealers selling EVs now exceeds 40% and 23%, respectively. West Virginia also saw significant growth from 3% to 50% in three years.
States with the most and least improvement by percentage of new car dealers selling EVs*: November 2020 and 2023 – iSeeCars Study | ||||
rank | state | Num X improvements | Percentage of new car dealers selling EVs, 2023 | Percentage of new car dealers selling EVs, 2020 |
1 | idaho | — | 40.7% | 0.0% |
2 | montana | — | 23.1% | 0.0% |
3 | west virginia | 16.8 times | 50.0% | 3.0% |
Four | oklahoma | 11.1 times | 45.8% | 4.1% |
Five | arkansas | 8.3 times | 42.5% | 5.1% |
6 | south carolina | 8.0 times | 59.7% | 7.5% |
7 | mississippi | 6.1 times | 38.2% | 6.3% |
8 | louisiana | 6.0 times | 39.0% | 6.5% |
9 | Kansas | 5.8 times | 56.5% | 9.7% |
Ten | minnesota | 5.4 times | 54.1% | 10.0% |
37 | new hampshire | 2.8 times | 61.8% | 21.7% |
38 | new mexico | 2.8 times | 63.8% | 22.5% |
39 | new york | 2.8 times | 60.4% | 21.6% |
40 | Oregon | 2.5 times | 63.3% | 25.8% |
41 | vermont state | 2.4 times | 56.0% | 23.5% |
42 | maryland | 2.3 times | 62.1% | 26.6% |
43 | connecticut | 2.2 times | 62.6% | 28.4% |
44 | Massachusetts | 2.2 times | 62.6% | 29.0% |
45 | California | 2.1 times | 65.3% | 31.2% |
46 | Washington | 2.1 times | 54.5% | 26.5% |
*Excluding Tesla dealers. Insufficient new car dealership data for Alaska, North Dakota, South Dakota, and Wyoming.
“It’s interesting to note that even states with the lowest growth in new EV dealers, such as Washington and California, have more than doubled their share over the past three years,” Brauer said. “Currently, more than 50% of new dealers in most states sell EVs, and more than 60% in 15 states.”
California, Washington and Utah lead in used electric vehicle dealerships
Even in states such as California and Washington, which lead in used EV market share, the percentage of used dealers selling electric vehicles has yet to reach 50%.
Top 10 and Bottom 10 States by Percentage of Used Car Dealers Selling EVs*: November 2023 – iSeeCars Survey | |||
rank | state | Percentage of used car dealers selling EVs | Used EV market share declining in 1-5 years |
1 | California | 47.6% | 5.3% |
2 | Washington | 45.2% | 4.9% |
3 | Utah | 43.1% | 2.8% |
Four | colorado | 42.9% | 2.5% |
Five | Hawaii | 41.3% | 1.2% |
6 | maryland | 41.0% | 2.5% |
7 | nevada | 40.0% | 2.7% |
8 | arizona | 39.6% | 2.7% |
9 | Oregon | 39.6% | 2.4% |
Ten | illinois | 36.1% | 2.3% |
– | |||
41 | montana | 20.3% | 0.2% |
42 | kentucky | 19.4% | 0.7% |
43 | arkansas | 18.6% | 0.8% |
44 | Alabama | 18.1% | 0.8% |
45 | south dakota | 17.6% | 0.2% |
46 | louisiana | 16.9% | 0.8% |
47 | west virginia | 16.2% | 0.2% |
48 | north dakota | 15.0% | 0.2% |
49 | mississippi | 13.1% | 0.3% |
50 | wyoming | 11.2% | 0.3% |
*Excludes used cars sold directly by Tesla.
West Virginia, Mississippi and Wyoming have the fastest growth in used EV dealerships
In West Virginia, the percentage of used EV dealers has increased more than 10 times over the past three years. Mississippi State and Wyoming rank him second and third at 6.1 and 4.3, respectively. The share of used EV dealers is approaching 50% in Washington, California, Hawaii, and Oregon, all of which are growing at about 1%.
States with the biggest increase in used car dealers selling EVs*: November 2020 compared to 2023 – iSeeCars study | ||||
rank | state | Num X improvements | Percentage of used car dealers selling EVs, 2023 | Percentage of used car dealers selling EVs, 2020 |
1 | west virginia | 10.8 times | 16.2% | 1.5% |
2 | mississippi | 6.1 times | 13.1% | 2.2% |
3 | wyoming | 4.3 times | 11.2% | 2.6% |
Four | maine | 3.8 times | 26.9% | 7.1% |
Five | south carolina | 3.8 times | 21.7% | 5.8% |
6 | Delaware | 3.5 times | 25.8% | 7.4% |
7 | north dakota | 3.5 times | 15.0% | 4.3% |
8 | louisiana | 3.4 times | 16.9% | 5.0% |
9 | wisconsin | 3.3 times | 28.5% | 8.7% |
Ten | Alabama | 3.2 times | 18.1% | 5.6% |
– | ||||
41 | idaho | 1.6 times | 25.6% | 16.3% |
42 | colorado | 1.5 times | 42.9% | 28.3% |
43 | Utah | 1.4 times | 43.1% | 30.6% |
44 | nevada | 1.4 times | 40.0% | 29.3% |
45 | vermont state | 1.3 times | 30.7% | 22.7% |
46 | arizona | 1.3 times | 39.6% | 31.1% |
47 | Oregon | 1.1x | 39.6% | 35.4% |
48 | Hawaii | 1.1x | 41.3% | 36.9% |
49 | California | 1.1x | 47.6% | 42.6% |
50 | Washington | 1.0x | 45.2% | 44.1% |
*Excludes used cars sold directly by Tesla.
“The transition to electric vehicles will require collaboration across the auto industry, with manufacturers, dealers, and state and local governments all supporting this effort,” Brauer said. “Dealers still do not have 100% participation in EV sales, but this number has improved dramatically over the past three years as more brands and dealer groups support electric vehicle sales.”
Details from iSeeCars:
methodology
iSeeCars analyzed the inventory of more than 82,000 new and used car dealers on a monthly basis from November 2020 to November 2023. Low-volume dealers were excluded from the analysis, as were new and used cars sold directly from Tesla showrooms/Tesla Online. The number of dealers who sold at least one EV in a given month was tallied and expressed as a percentage of dealers who sold cars in that month. The analysis was repeated for each state and the 50 most populous metropolitan areas in the United States. The market share of new and used EVs (excluding new Teslas) was also calculated for each market.
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This article, Explosively expanding market share with non-Tesla EV dealersoriginally published on iSeeCars.com.