The United States has historically trailed behind Europe and other regions in terms of Electric vehicle adoption, but that is no longer the case. According to Counterpoint, American EV sales increased by 79 percent year on year in the first quarter of 2023, propelling the country beyond Germany to become the world’s second-largest electric car market. Only China is larger, the analyst group said.
Electric vehicle tax incentives are said to have had a “critical role” in increasing sales and may have aided the US automobile sector as a whole.
Tesla accounted for 62.7 percent of Electric vehicle sales in the quarter, with the Model Y and Model 3 topping the list. GM was a distant second, with the Bolt EUV and ordinary Bolt accounting for 7.6 percent of the market. Because of the ID.4, Volkswagen had 6.3 percent of the market. Stellantis owns roughly 43.9 percent of the plug-in hybrid market thanks to Jeep’s PHEV Wrangler and Grand Cherokee models, as well as the Chrysler Pacifica minivan. BMW was second at 16.1 percent with the X5, while Toyota was third at 15.4 percent with the RAV4.
Counterpoint is bullish on future Electric vehicle sales in the United States. While new rules have reduced the variety of vehicles eligible for tax credits, they continue to have an impact on demand. Interest may also be boosted by the early phases of economic recovery. We’d also want to point out that increased domestic manufacturing of several EVs, such as the VW ID.4 and future Hyundai models, should broaden the variety of vehicles eligible for credits.
EV sales were expected to skyrocket at some time. States such as California and New York will require that all new passenger car sales be electrified by 2035, and automakers such as General Motors have already committed to become all-electric around the same time. However, if this analysis is correct, accelerated growth is already started.
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