Image source: New York Times
Electric vehicles: More people than ever before are buying electric vehicles, and brands besides Tesla are rising to prominence.
The situation was best characterized by Matt Degen, an editor at Cox Automotive, a website and business focused on cars.
“It’s not your eyes tricking you,” highlighted Degen.
“For the longest time, the majority of the EVs on the road were Teslas, and they still get the lion’s share of sales.”
“But they’re now hardly the only game in town.”
Kelley Blue Book reported that 5.6% of the sold cars last year were electric vehicles.
In comparison, there were only 1.4% of EVs sold two years ago.
Corey Cantor, a BloombergNEF expert, mentioned Norway in relation to the success of the global markets.
A critical turning point for broader acceptance was highlighted by the 5% market share.
According to BloombergNEF, similar developments also occurred in Chinese and European markets.
Bloomberg’s list of “electric vehicles” included plug-in hybrids, but the majority of them are powered by batteries.
Although 5% might seem insignificant, it could be the start of something becoming universal.
For instance, according to Cox Automotive, the market shares for electric vehicles and the overall US market share for Hyundai are identical.
Buying a Hyundai feels like a norm, and the same is true for buying an electric vehicle.
The convenience is the major deterrent to purchasing an electric vehicle.
“I think now the demand is definitely there,” said Cantor.
“It’s just been more a supply side of automakers not being able to ship enough.”
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Supply & demand
Since the beginning of 2022, the global auto industry has struggled with the delivery of parts, which has slowed down the production of a number of automobiles.
The manufacturers were unprepared for the sudden success of a few electric vehicle models.
The 2021 Mustang Mach-E, for instance, was the first electric car to compete with Tesla sales.
Since then, Ford has struggled to meet demand.
Every Mach-Es manufactured by the business, according to Darren Palmer, vice president of Ford’s electric vehicle programs, was manufactured in response to a specific customer order.
“We could sell it out at least two or three times over,” said Palmer.
“We have held back from launching more global markets because we’re completely sold out.”
An updated edition of Ford’s F-series pickup truck is the F-150 Lightning.
The firm is also upgrading the Michigan facility where the Lightning is manufactured.
Additionally, the selection of electric vehicles available on the market has been expanding.
According to Kelley Blue Book, eleven electric vehicle models sold more than 1,000 units in 2019.
There were 26 different models in 2022.
Despite the fact that they already sold electric vehicles, Hyundai and Kia introduced new versions for the Hyundai Ioniq 5 and the Kia EV6.
Additionally, Rivian debuted the R1S SUV and R1T pickup truck.
After the Bolt EV and Bolt EUC were released onto the market following a battery fire recall, General Motors also experienced an increase in sales.
Currently, the market offers electric vehicles from the high-end manufacturers listed below:
“There’s different segments, there’s different price levels,” said Matt Degen.
“It’s not just having to spend $50,000 or $100,000 on an EV anymore.”
According to Car and Driver editor-in-chief Tony Quiroga, increased driving ranges and quicker charging times have rendered cheaper electric vehicles better.
The Hyundai Ioniq 5 ($41,000 starting MSRP) also won the award for 2022 Car and Driver Electric Vehicle of the Year.
“It’ll go from 10% to 80% on a fast charger in 18 minutes,” said Tony Quiroga. “Which is something that only the luxury brands were doing.”
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Inflation Reduction Act
Even though there is a larger selection of electric vehicles available, it is anticipated that EV sales will increase as production issues are fixed.
But there are still a lot of unanswered questions.
Jessica Caldwell, an industry analyst for Edmunds.com, believes that the spike in interest in electric vehicles earlier this year may have been influenced by gas prices.
Given the recent sharp decline in gas costs, people might reconsider buying electric vehicles in the coming year.
The Inflation Reduction Act’s effects, meanwhile, are still unknown.
The measure, which was passed this year, altered the conditions under which electric vehicles might qualify for consumer tax credits.
Additionally, it sets a price cap for the car based on the buyer’s income.
A few conditions also encourage the manufacture of electric vehicle batteries domestically.
According to Corey Cantor, it’s not about how many electric vehicles will be qualified, but rather which ones.
“So, if a Tesla Model 3 and the Chevy Bolt, and the Tesla Model Y, and a Ford Mach-E and an F-150 Lightning all qualify, those are high volume vehicles,” said Cantor.
Incentives may result in a rise in the sale of electric vehicles due to their popularity and high sales.