Electric vehicle (EV) transaction prices climbed again in March, according to the latest New-Vehicle Average Transaction Price (ATP) Report from Cox Automotive‘s Kelley Blue Book. Buyers paid an average of $59,205 for a new EV, marking a 7.0% increase year over year. That figure also rose from February’s revised ATP of $57,015. This increase highlights how EV transaction prices continue to outpace the broader auto market.
The gap between EVs and internal combustion engine (ICE) vehicles widened. While the overall industry ATP settled at $47,462 in March, EVs cost nearly 25% more than the market average.
EV Incentives Decrease as Transaction Prices Rise
While EV transaction prices went up, incentive spending on EVs dropped. In March, automakers offered incentives averaging 13.3% of ATP – down from 14.3% in February. Even with this decline, EVs still received nearly double the industry average incentive of 7.0%.
Tesla led the market in EV pricing. The brand’s ATP rose to $54,582, a 3.5% increase year over year. Prices for Tesla’s Model 3 and Model Y climbed month over month and year over year. However, Tesla’s Q1 2025 sales declined more than 8% compared to the same period last year. That marked another quarter in a downward sales trend that began after Q1 2023.
New-Vehicle ATPs Hold Steady Overall
In the broader market, new-vehicle ATPs showed little change. March’s average of $47,462 was nearly flat from February’s revised $47,577 and just under a 1% increase from the previous year. Incentives averaged 7.0% of ATP – unchanged month over month but slightly higher year over year.
Only 26 vehicle models carried ATPs under $30,000, making up about 14% of U.S. vehicle sales. These models—including the Buick Envista, Chevy Trax, Honda HR-V, Kia Soul, Mazda3, and Nissan Sentra – face higher risk from new 25% tariffs due to foreign production.
March sales hit 1.59 million units, the highest in nearly four years. Analysts attributed the surge partly to buyers trying to beat expected price increases caused by new tariffs.
Brand-by-Brand ATP Shifts
Among major automakers, Infiniti saw the biggest ATP jump at 18.9%, followed by Porsche at 11.5%. In contrast, Jeep, Ram, and Mercedes-Benz all posted declines of 10.6%, 5.8%, and 4.7%, respectively. These results show shifting buyer preferences and how brands continue to adjust to market dynamics.
