Electric vehicle sales are expected to reach a record 9% of all passenger vehicles in the United States this year, according to Atlas Public Policy. That will represent a 7.3% increase in new car sales in 2022.
It will be the first time more than 1 million electric vehicles will be sold in the American nation in a calendar year, likely reaching between 1.3 million and 1.4 million cars, according to the report
Although the figures show significant progress in electrification , the nation lags behind countries such as China, Germany and Norway.
Far from Asia and Europe
Electric vehicles reached 33% of sales in China, 35% in Germany and 90% in Norway during the first six months of 2023, according to a BloombergNEF electric vehicle outlook published in June.
In the aforementioned countries, ambitious government zero-emission targets, vehicle tax incentives and subsidies, and affordable options all play a role in the consumer’s decision to adopt a plug-in vehicle.
Several factors helped drive electric vehicle adoption in the U.S. this year, but in summary, lower prices have contributed significantly.
Tesla, the current market leader in electric vehicles, lowered prices on its popular vehicles several times throughout the year. This forced other automakers to try to keep pace.
Automakers are also now offering greater incentives for their electric models, and dealers are offering greater discounts as the supply of electric vehicles at dealerships increases.
The Inflation Reduction Act, which increased tax credits for qualifying new and used electric vehicle purchases, also helped reduce electric vehicle costs for buyers by $3,750 or $7,500, depending on certain requirements.
Electric car battery costs are also falling as critical materials, such as lithium, become cheaper, which also makes the vehicles increasingly affordable.