Sales of electric vehicles will break records this year

Sales of electric vehicles will break records this year

According to Atlas Public Policy, sales of electric vehicles are predicted to reach a record 9% of all passenger vehicles in the United States this year. As of 2022, that represents a 7.3% increase in new car sales.

According to the research firm, there will be a record number of electric vehicles sold in the United States in a single year, likely reaching 1.3 million to 1.4 million units.

While the data indicates notable advancements in electrification, the country is still lagging behind nations such as China, Germany, and Norway.

According to a BloombergNEF EV outlook released in June, EV sales for the first half of 2023 reached 33% in China, 35% in Germany, and 90% in Norway. Both plug-in hybrid EVs and battery electric vehicles are included in these numbers.

In those nations, consumers’ decisions to switch to plug-in vehicles are influenced by aggressive government zero-emissions targets, vehicle tax incentives and subsidies, and reasonably priced options.

This year’s increase in EV adoption in the US was largely due to price reductions.

The price of its well-known cars was lowered several times this year by Tesla, the leading electric vehicle manufacturer at the moment. Other automakers were forced to make an effort to keep up. Additionally, automakers are now providing bigger incentives for their electric models, and as the inventory of EVs increases at dealerships, dealers are offering deeper discounts.

The Inflation Reduction Act, which raised tax credits for eligible new and used EV purchases, also contributed to lower EV prices for consumers, with reductions of either $3,750 or $7,500, contingent upon specific conditions.

As essential battery components like lithium become more affordable, the cost of electric car batteries is also decreasing, resulting in increasingly affordable cars.

Notwithstanding the steady increase in the U.S. EV market share, certain car buyers continue to face obstacles when contemplating an electric vehicle. The majority of early EV purchasers were wealthier, more open to experimenting with new technologies, and more likely to be able to charge their cars at home. As it looks to attract the next generation of electric vehicle buyers, the auto industry must address disparities with these factors.

The higher initial cost of switching to electric vehicles and the unreliable and inaccessible public charging infrastructure continue to be obstacles for many consumers, according to BloombergNEF. According to Kelley Blue Book estimates, the average cost of a new electric vehicle last month was $51,762, which was $3,826 more than the average cost of a new car.

Numerous significant automakers have embraced Tesla’s charging technology in order to address certain infrastructure-related issues. In addition to having the largest public charging network, Tesla has long used the North American Charging Standard for its EV plugs. The Combined Charging System, or CCS, has been the main one used by the rest of the industry. By utilizing Tesla’s technology, charging concerns will be reduced and non-Tesla EV drivers will have more opportunities to charge elsewhere. However, those adjustments won’t begin.

The industry is also battling worries about a slowdown in the EV market. A few automakers are reducing their electrification goals, such as General Motors and Ford Motor Co.

On the other hand, a lot of foreign automakers are intensifying their plans concurrently. In the upcoming years, consumers can anticipate seeing Chinese EV manufacturers like BYD enter the American market.

A number of states in the United States have established deadlines for the majority of their vehicle sales to be emission-free by. By 2035, all newly sold vehicles in California, Washington, and New Jersey must have zero emissions, and by the same year, the sale of new gas-powered vehicles will be prohibited in New Jersey.