Are Electric vehicles (EVs) witnessing a remarkable surge in popularity in the United States?
Yes, that’s due to the sales projected to break the 1 million mark in 2024.
Despite withdrawing federal and state incentives for many EV models, it leads to many purchases. Customers purchased almost 300,000 EVs in the 2nd quarter of this year, representing an extensive year-over-year increase.
However, there are signs that rapid growth may need to be more sustainable as dealers face growing inventories of unsold EVs.
This article will discuss the record-breaking income figures, the challenges, and the potential future of EV sales inside the US.
Record-Breaking EV Sales
The US EV market has experienced a remarkable upswing, with consumers demonstrating a strong appetite for electric vehicles. Wards Intelligence and Cox Automotive Analysts report a surge in EV sales, with approximately 300,000 units sold between April and June 2024.
It represents an impressive year-on-year growth of around 50%, despite tightening federal tax credit rules. Notably, plug-in hybrid sales have also witnessed an upward trend.
Growing Challenges to Sustain Growth
Despite the record-breaking sales figures, concerns are raised about the sustainability of the current growth trajectory. Cox Automotive reveals that dealers now have an average inventory supply of around 53 days for internal combustion engine (ICE) vehicles, while the collection for
EVs is more than double that figure. In the second quarter of this year, the EV inventory exceeded 92,000 units, a substantial increase compared to the previous year.
Factors Influencing the EV Market
Multiple factors contribute to the growing challenges in sustaining the rapid pace of EV sales. One factor is the post-pandemic boost in production, resulting in an influx of EVs into the market.
However, traditional consumer hesitations towards EV adoption, including pricing and charging infrastructure concerns, continue to impede further growth. The primary barrier among buyers, according to Cox surveys, is the higher price of EVs compared to their gas-powered counterparts.
Incentive Confusion
Another factor complicating the EV market landscape is clarity surrounding incentives. Last year, numerous EV models qualified for federal tax credits of up to $7,500, with additional incentives provided by cities and states. However, the eligibility for tax credits has narrowed significantly due to the Inflation Reduction Act passed by Congress.
Some regions, such as Oregon and New Jersey, have even depleted their rebate programs’ funds, further impacting EV sales. The changing incentive landscape has altered the purchasing dynamics and affected certain automakers’ sales.
Efforts to Mitigate Challenges
Automakers have taken various measures to counter the headwinds facing the EV market. Lowering prices has been one strategy, with the average cost of an electric vehicle dropping nearly 20% to $53,438 in the past year.
Manufacturers have also capitalized on a loophole in the Inflation Reduction Act, allowing them to claim credits on leased vehicles instead of sold ones. It has led to an increase in lease promotions by automakers like Hyundai.
The Future of EV Sales
While EV sales have reached unprecedented levels, industry experts anticipate potential challenges that could slow down the pace of growth.
Schweinsberg from Wards Intelligence suggests that sales of specific EV models may decline within a year or two of their introduction, a pattern observed in the automotive industry. It remains too early to determine the precise trajectory of the EV market.
FAQs
What is the most sold EV in 2024?
Based on current trends and previous data, Tesla Model Y will be the most-sold EV in 2024. Some popular electric vehicle models that have seen significant sales in 2024 include the Tesla Model Y, Hyundai Kona Electric, and BMW i4. The market dynamics can change, and new models may emerge as strong contenders in the EV sales race.
How many electric cars are expected to be sold in the US in 2024?
Approximately more than 320,000 electric motors were bought in the US in 2024. However, based on the information, the yearly sales figure is expected to surpass 1 million units, marking a substantial milestone for the enterprise.
What percentage of US cars will be electric in 2024?
Based on the projection, 7% of US cars will be electric in 2024, indicating a growing market share for electric vehicles. Nonetheless, the share of EVs inside the regular US car market is expected to fragment the entire industry, as traditional internal combustion engine vehicles still dominate the enterprise.
What percentage of US sales are EVs?
The percentage of EVs in the US is 6.1% but can vary depending on several factors, including marketplace demand, incentives, and customer options. However, with the growing recognition of electrical automobiles and the enterprise’s non-stop advancements, the share of EV income is projected to boom progressively in the coming years.
Final Thoughts
Electric vehicle sales have soared to new heights in the US, defying the withdrawal of incentives and showcasing consumers’ increasing interest in eco-friendly transportation.
However, challenges are emerging, including growing EV inventories and consumer concerns over pricing and charging infrastructure.
