Electric vehicle sales in the United States will reach a record high in 2023

Electric vehicle (EV) sales in the United States are expected to account for 9% of all passenger vehicles this year, a record high, according to research firm Atlas Public Policy.

Tesla carPhoto: Shutterstock

According to Agerpres, in 2022, electric vehicle sales in the United States accounted for 7.3% of all passenger cars.

It will be the first time that more than one million electric vehicles will be sold in the American market in a calendar year, probably reaching 1.3 – 1.4 million units, Atlas Public Policy predicts.

While this is significant progress, the United States still lags behind other countries, such as China, Germany, and Norway, in electric vehicle success.

According to BloombergNEF EV data, in the first six months of this year, electric vehicles accounted for 33% of sales in China, 35% in Germany and 90% in Norway. The figures include both battery-powered vehicles and plug-in hybrids.

In China, Germany and Norway, governments have set ambitious targets to reduce greenhouse gas emissions and provided subsidies for the purchase of electric vehicles,

Tesla has lowered its prices

In the United States, falling prices have boosted sales of electric vehicles.

Tesla, the current leader in the electric vehicle market, has slashed the prices of its models several times this year, forcing other automakers to follow suit. Additionally, automakers now offer higher subsidies for their electric models.

The American investment program (Inflation Reduction Act, IRA), a 369 billion dollar package, provides for the distribution of subsidies for green industries, such as the manufacturing of batteries for electric vehicles or the production of solar panels. Depending on certain requirements, the American subsidy program has helped reduce electric vehicle costs by between $3,750 and $7,500. And battery costs for electric vehicles have fallen, amid falling prices of some raw materials, such as lithium.

But for many consumers, unreliable and inaccessible public EV charging infrastructure remains a barrier, according to BloombergNEF. As of October, an electric car still cost an average of $3,826 more than a new car, coming in at $51,762, up from $47,936, according to Kelley Blue Book estimates.

And analysts at Goldman Sachs predict that battery prices for electric vehicles will fall by 40% by 2025.

The automotive industry is also being hit by fears of a slowdown in the electric vehicle market. Some automakers, including Ford and General Motors, have scaled back their electrification goals. But at the same time many foreign automakers are expanding their plans. Consumers can expect Chinese EV makers like BYD to enter the U.S. market in the next few years.

Chkayer

Chkayer

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