EV Sales Are Just Getting Started
You may have seen dire headlines that EV sales have dried up. They haven't. Electric vehicles sold reasonably well in 2023, and here's our forecast for the coming year.
EV Sales in 2023
Despite reports suggesting a decline in EV sales, 2023 actually saw the highest sales of electric vehicles ever. In the U.S., nearly 1.2 million battery-electric vehicles and 190,000 plug-in hybrids were sold, making up 8.8 percent of the total new-car market. Globally, the numbers were similarly impressive.
These strong sales indicate that the transition to electric vehicles is well underway. The EV Sales Tracker estimates that in 2024, even more EVs will be sold, with Bloomberg projecting sales of nearly 1.9 million units in the U.S. alone.
One key factor contributing to the success of EV sales is the growing availability of EV models. In 2023, battery-electric cars accounted for roughly 8 percent of sales, equal to conventional hybrid models. Tesla continues to dominate the market, accounting for half of all EV sales since 2011.
Factors Affecting Growth
While EV sales have been strong, there have been some challenges affecting growth. In the second half of 2023, growth in EV sales slowed compared to the first half. This could be attributed to various factors such as higher consumer interest rates, limited availability of affordable EVs, and shortages of popular models.
Additionally, some automakers, including GM and Ford, delayed investments in EV battery or assembly capacity. This may have been influenced by the need to conserve cash and navigate pricier loan rates. However, these delays do not indicate a decline in demand for EVs.
On a positive note, new and significant EV models are entering the market. For example, the 2024 Kia EV9, a three-row mid-size family SUV, offers more interior space and a competitive price. Hyundai also plans to launch the Hyundai Ioniq 7, another three-row SUV, by the end of the year.
Global Perspective on EV Sales
It's important to note that the U.S. represents only 11 percent of global EV sales. The bulk of EV sales and innovation occur in China, with projections of 10 million EV sales in 2024, accounting for more than half of the global total. China's strategic investment in EV production has positioned it as a leader in the industry, surpassing other major automakers.
While the U.S. market has unique challenges, such as a strong demand for large vehicles like pickup trucks and SUVs, the availability of EVs continues to increase. The arrival of new models and ongoing research and development indicate that EV sales will continue to grow worldwide.
To fully understand the EV market, it is important to check the data, observe the EVs on the road, and conduct thorough research both online and at dealerships.
