SACRAMENTO, Calif. — California has long been a leader when it comes to electric vehicle adoption, but sales in the last quarter of 2023 showed their market share declining. Battery electric, plug-in hybrid and hybrid vehicle sales ended the year with 21.4% of market share, according to data released this week by the California New Car Dealers Association.

What You Need To Know

  • Sales of battery electric, plug-in hybrid and hybrid vehicles in California lost market share in the fourth quarter of 2023

  • The market share of electrified vehicles in 2023 was 21.4%, according to a new report from the California New Car Dealers Assn.

  • The share of traditional internal combustion engine vehicles increased to 63.9% last year

  • Tesla's EV market share fell, while Mercedes and BMW gained

Amid an increase in overall car sales in the state, traditional internal combustion engine vehicles gained market share, accounting for 63.9% of new vehicle sold in 2023.

Despite EVs’ cooling sales, California remains the leader in battery electric vehicle registrations nationwide. Almost 34% of all battery electrics sold in the U.S. in 2023 were in California compared with the national average of 7.5%.

The bestselling electrified models in the state last year were the all-electric Tesla Model Y, Tesla Model 3 and Chevy Bolt, followed by the plug-in hybrid Jeep Wrangler.

Tesla’s California sales took a hit, losing 10.5% of its market share in 2023, as Mercedes and BMW gained 2.2% and 2.8% respectively.

Toyota is the bestselling brand in the state overall, followed by Tesla, Honda, Ford and Chevrolet.