According to a recent projection, sales of electric vehicles are predicted to surpass one million for the first time this year and reach a record 9 percent of all passenger cars in the U.S. this year, up from 7.3 percent in 2022. A research and consulting group called Atlas Public Policy, situated in Washington, D.C., estimated that the number of cars sold would likely fall between 1.3 million and 1.4 million.
The United States is falling behind nations like China, Germany, and Norway in terms of electrification, despite the fact that the data indicates considerable improvement. According to a BloombergNEF EV projection released in June, EV sales during the first half of 2023 accounted for 33% of sales in China, 35% in Germany, and 90% in Norway. Plug-in hybrid EVs and battery electric vehicles are both included in the figures.
In those nations, consumers’ decisions to switch to plug-in vehicles are influenced by aggressive government zero-emissions targets, automotive tax incentives and subsidies, and reasonably priced options. This year, the cost of EVs for consumers has decreased, which is one of the main reasons for the increase in EV adoption in the United States.
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, as the supply of EVs at showrooms increases, automakers are now providing larger incentives on their electric models, and retailers are slashing prices even further.
Electric vehicle sales in the US
The Inflation Reduction Act of the United States, which raised tax credits for eligible new and used EV purchases, also assisted in lowering the price of EVs for consumers, either by $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 economical cars. Even with the steady increase in the U.S. EV market share, certain car purchasers 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 inequalities with these variables.
The higher initial cost of switching to electric vehicles and the unreliable and unavailable public charging infrastructure continue to be obstacles for many consumers, according to BloombergNEF. New electric vehicles (EVs) continued to cost, on average, $3,826 more last month than the average new automobile ($51,762 versus $47,936, according to Kelley Blue Book estimates).
Numerous significant automakers have embraced Tesla’s charging system in order to address certain infrastructure-related issues. In addition to having the largest public charging network, Tesla has long employed the “North American Charging Standard” for its EV connectors. The “Combined Charging System,” or “CCS,” has been the main operating system for the remainder of the business.
By utilising 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 take effect until 2025 and the next year. 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 strategies concurrently. In the upcoming years, consumers may 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 2035, all newly sold automobiles 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.
