SUVs Dominate The Market: Over 50% Of U.S. BEV And PHEV Sales In 2023

As electric vehicles (EVs) have increasingly appeared on the roads in the United States (U.S.), the transition to EVs in the country has been led by the surging popularity of SUVs in 2023.

SUV Dominance In U.S. Market

According to new data from the Department of Energy (DOE), SUVs accounted for over half of all battery electric vehicle (BEV) sales and a staggering 83% of plug-in hybrid electric vehicle (PHEV) sales last year.

In addition, the data shows that small and standard SUV body styles have far outpaced traditional vehicle designs when it comes to EV purchases. While vehicles still made up 43.4% of BEV sales, they represented just 10% of PHEV sales.

Moreover, this trend reflects the broader shift in consumer preferences towards larger, less aerodynamic vehicles, even as automakers race to electrify their lineups. SUVs, which are generally heavier and less efficient than their sedan counterparts, now dominate the EV and PHEV markets.

SUV Efficiency and Concerns

However, the prevalence of SUVs in the EV space is not without its drawbacks. The International Energy Agency (IEA) has warned that SUVs emit 20% more CO2 than normal vehicles, regardless of the powertrain. And while electric SUVs are cleaner than their gasoline-powered counterparts, they still face efficiency challenges compared to lighter and more aerodynamic EVs.

The DOE has taken a more optimistic view, stating that a small electric SUV with 300 miles of range can have half the lifetime greenhouse gas emissions of a comparable gasoline-powered vehicle. However, the agency acknowledges that the rise of SUVs is countering some of the emissions reductions expected from increased EV adoption.

In 2023, over 1.4 million plug-in electric vehicles were sold in the U.S., representing a 50% increase from the previous year. BEVs accounted for 80% of these sales. Overall, PHEVs reached 10.5% of monthly sales in September 2024, up from 9.4% for the full year in 2023.

Read More: Survey Finds Half Of U.S. Shoppers Are Eager To Test-Drive EVs

Future Outlook for SUV-Heavy EV Market

As automakers continue to expand their EV lineups, the dominance of SUVs in this space is a trend that is likely to continue. However, policymakers and industry stakeholders will need to grapple with the efficiency and emissions challenges posed by this consumer preference shift in order to ensure the electrification of the U.S. vehicle fleet truly delivers on its environmental promise.

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