San Francisco BEV and hybrid sales combine to outsell
pure-gasoline vehicles
In a milestone for the growth of electrified vehicles in the
United States, half of all new retail vehicle registrations in the
San Francisco DMA (Designated Market Area) in March were
electrified, according to new analysis of the latest registration
data available from S&P Global Mobility. This represents the
first time a major US metropolitan area has reached this threshold.
San Francisco’s 50% electrification level is more than three times
that of the United States (16.6%) in the same March period. To show
it was not a one-time event, the growth of electrification in San
Francisco continued in April, reaching yet another record of
53.1%.
Note that “electrified” includes battery-electric and
gasoline-electric hybrid vehicles; both of which played roles in
propelling San Francisco to this new height: The San Francisco
DMA’s EV share in March of 34.2% was more than four times the US
average of 7.3%, and the Bay Area’s hybrid share of 15.8% was more
than 6 percentage points above the United States’ hybrid rate of
9.3%.
Retail market share by powerplant, San Francisco vs Rest
of United States, March 2023
Two key drivers of San Francisco’s success with electrification
include:
- The remarkable similarities between the San Francisco and EV
customer profiles (see table below); and, - The appeal of several EV brands outside of just Tesla,
including less well-known (for EVs) marques as well.
In the Bay Area, 38.6% of new vehicle buyers in March were ages
18-34, versus 32.7% in the remaining DMAs; this skew towards
younger buyers in the Bay Area was in the direction of but still
below 42.9% for all EV buyers nationally.
The demographic makeup of the San Francisco market is similar to
the profile of the EV buyer nationally, as reflected in several
metrics. Looking specifically at the ethnic mix, more than a third
of all San Francisco buyers in March were Asian-American, slightly
above the national EV average of 33.1% but more than four times the
average across the rest of the United States. Further, Middle
Eastern households represent 3.6 percent of all new vehicle
registrations in San Francisco, near to the national EV mix of 4.0
percent but double the non-San Francisco average of 1.8%.
One key demographic element among electrified buyers: They are
well off financially. Almost half of San Francisco buyers (46.6%)
enjoyed a household income of more $200,000, similar to the 39.9%
for all EV buyers, but more than twice the ratio of non-San
Francisco consumers at 22.6%. At the other end of the spectrum,
only 15.7% of Bay Area buyers had household income of less than
$75,000, close to the 14.7% for all EV buyers nationally but only
half of the non-San Francisco average of 30.5%.
Additional S&P Global Mobility analysis of registration data
by zip code showed the top penetrations for electric vehicles were
not in the “7-by-7” square miles of what is considered the city of
San Francisco – although hybrid vehicles make significant
penetration there. Rather, the wealthy Bay Area enclaves such as
Los Altos, Saratoga, Piedmont, and Orinda have among the largest EV
representations. One intriguing data point: One of the highest EV
penetrations was in the zip code for San Ramon – home to the global
headquarters of Chevron.
San Francisco Bay Area zip codes by EV Retail Share:
April 2022-March 2023
In reaching such lofty electrified registration numbers, several
brands achieved shares of the EV market in the Bay Area far above
their EV shares in the remaining DMAs (see table below).
Predictably, Tesla’s share in the backyard of its original Palo
Alto world headquarters and the Fremont home of its first US
assembly plant was almost five times its share in the rest of the
country. Tesla’s share of the overall San Francisco EV market was
66.4% in March, with the brand accounting for almost one of every
four new vehicles registered in San Francisco (across all fuel
types and all brands).
But other EV models also performed well in the Bay Area: The
Volkswagen ID4’s share of the San Francisco DMA quadrupled from
0.3% to 1.4%, and Chevrolet Bolt share rose from 0.2% to 1.2% with
its resurgence.
Hybrids also played a key role in driving San Francisco beyond
the rest of the US in electrification. The strong Toyota hybrid
share of 6.5% has been driven by its broad hybrid product
portfolio. Honda hybrid share has climbed to 2.8%, Lexus hybrid
share tripled to 1.5%, and Kia also gained ground in the Bay Area
due to strong hybrid demand.
The S&P Global Mobility analysis indicates the Bay Area
results in March are not an anomaly. While San Francisco was the
first DMA to reach 50% electrification, other DMAs are not far
behind. Five DMAs’ electrification rates (besides San Francisco)
surpassed 30% in March, including Seattle, San Diego, Portland, Los
Angeles, and Sacramento, with the first two exceeding 35%. As more
EVs become available in the US market, an increasing number of DMAs
will achieve a 50% electrification rate – and beyond.
Read more
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FOR MORE ANALYSIS OF ELECTRIC VEHICLE TRENDS
This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.
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- Source: http://www.spglobal.com/mobility/en/research-analysis/firstever-major-us-metro-area-hits-50-electrified-vehicle-regi.html
