EV sales in US up 9%, still below many countries

EV sales in US up 9%, still below many countries

Robert Besser
28 Nov 2023, 15:17 GMT+10

• US electric vehicle (EV) sales are expected to reach a record of 9% of all passenger vehicles this year, up from 7.3% of new car sales in 2022, according to Atlas Public Policy.
• For the first time, EV sales will be more than 1 million EVs in one calendar year, potentially reaching between 1.3 and 1.4 million cars sold.
• Ambitious zero-emissions targets, vehicle tax incentives and subsidies, and affordable options have contributed to the rise of EVs in these countries.

DETROIT, Michigan: US electric vehicle (EV) sales are expected to reach a record of 9% of all passenger vehicles this year, up from 7.3% of new car sales in 2022, according to Atlas Public Policy.

In addition, for the first time, EV sales will be more than 1 million EVs in one calendar year, potentially reaching between 1.3 and 1.4 million cars sold.

However, the US is lagging behind countries such as China, Germany and Norway, in terms of EV sales.

A Bloomberg-NEF EV outlook published in June reported that EVs, including both battery electric vehicles and plug-in hybrid models, accounted for 33% of car sales in China, 35% in Germany, and 90% in Norway in the first six months of 2023.

Ambitious zero-emissions targets, vehicle tax incentives and subsidies, and affordable options have contributed to the rise of EVs in these countries.

Meanwhile in the US, lower prices have helped increase EV sales this year.

Current EV market leader Tesla lowered prices for its popular vehicles multiple times throughout the year, forcing other automakers to keep pace.

The Inflation Reduction Act, which increased tax credits for qualifying new and used EV purchases, also helped reduce EV costs.

As critical battery materials such as lithium are becoming less expensive, EVs are increasingly affordable due to lower battery costs.

In addition, many non-American car companies, most notably Chinese EV-makers such as BYD, are establishing plans to enter the US market.

Several US states have set target dates for new vehicle sales to be mainly zero-emission models. California and Washington have mandated that 100% of new vehicles sold in the state be zero-emission by 2035, while New Jersey will ban the sale of new gas-powered vehicles in the same year.