Electric Vehicle Boom in the US
According to Bloomberg New Energy Finance, more than 960,000 pure electric vehicles (EVs) were sold in the US by October, surpassing the million-mark in the last month. This robust growth is largely attributed to an array of factors including the increasing variety of available EV models and government incentives.
Cox Automotive, which meticulously tracks US auto sales, confirmed the numbers. The figures only include battery-electric cars, excluding Plug-in Hybrids which are sometimes included in similar analyses.
The expansion in electric vehicle offerings has been instrumental in fueling this growth. By mid-2023, a whopping 95 EV models will be available in the US, marking a 40% surge in just one year. Additionally, the Inflation Reduction Act in the US offers tax breaks for electric vehicle purchases, further propelling sales.
By the first half of 2023, EVs are expected to account for about 8% of total new vehicle sales in the US. This figure is still far below China, where EVs represent 19% of vehicle sales. Globally, EVs account for 15% of new vehicle sales.
In the first half of 2023, China, Europe, and the US respectively accounted for 54%, 26%, and 12% of the global EV market. However, despite the strong presence of the US as the third-largest EV market globally, its share is considerably less compared to China and Europe.
Bloomberg NEF reports that, despite the growing EV sales, North America, including the US, still emits more CO2 through road transportation than any other significant world region. Even as EV sales surge, global auto CO2 emissions continue to rise. According to Bloomberg NEF, EVs will not have a substantial impact on global CO2 emissions until later in this decade.
Corey Cantor, Senior Fellow for Electric Vehicles at Bloomberg NEF, highlighted progress in electric vehicle manufacturers such as Tesla, Rivian, Hyundai, and Kia. He acknowledged solid performance by Mercedes-Benz, Volvo, and BMW in the US market.
Ford announced record electric vehicle sales in November, including record sales for the F-150 Lightning truck, whose production had previously been reduced. Cantor projected a 50% sales growth for the year, noting that the market had a strong base in 2022.
Cantor mentioned reports of a slowdown in EV demand in 2023, but the decline was modest, and sales ended up only slightly below expectations. Stephanie Valdez Streaty, Director of Industry Insights at Cox Automotive, attributed lower-than-expected sales to a shift in demand from early adopters to more cautious mainstream buyers, and the need to better showcase the benefits and value of electric vehicles to the public.
