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Electric vehicles: Electric vehicle sales are higher than ever, and manufacturers outside Tesla are becoming more well-known.
Matt Degen, an editor at Cox Automotive, a website and company specializing in autos, aptly described the situation.
“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.”
The numbers
5.6% of the cars sold in 2021, according to Kelley Blue Book, were electric cars.
Two years ago, only 1.4% of electric vehicles were sold.
Norway was mentioned by BloombergNEF analyst Corey Cantor in reference to the success within the global markets.
The 5% market share represented a crucial turning point for greater acceptance.
Similar trends, according to BloombergNEF, also took place in markets like China and Europe.
Although plug-in hybrids were listed among the “electric vehicles” by Bloomberg, battery-powered cars still provide the majority.
A norm
5% may not seem like much, but it may be the beginning of something universal.
For instance, according to Cox Automotive, Hyundai’s entire US market share and market shares for electric vehicles are alike.
Both purchasing a Hyundai and an electric car don’t feel out of the ordinary.
But the main obstacle to buying an electric vehicle is the convenience.
“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
The distribution of parts has been a challenge for the global auto industry since the beginning of 2022, which has hindered the manufacture of several vehicles.
The rapid success of a few electric vehicle models caught the manufacturers off guard.
For instance, the 2021 Mustang Mach-E was the first electric vehicle to compete with Tesla sales.
Since then, Ford has had trouble meeting the demand.
According to Darren Palmer, vice president of Ford’s electric vehicle projects, every Mach-Es produced by the company was manufactured according to a specific client 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.”
The F-150 Lightning is a later model of Ford’s F-series pickup truck.
Additionally, the company is updating the Michigan factory where the Lightning is produced.
Variety
Additionally, there are now a wider variety of electric automobiles on the market.
Eleven electric vehicle models sold more than 1,000 units in 2019, according to Kelley Blue Book.
In 2022, there were 26 different models produced.
Hyundai and Kia released new models of the Hyundai Ioniq 5 and the Kia EV6 although they already sold electric cars.
Rivian also unveiled its R1S SUV and R1T pickup truck.
Meanwhile, General Motors saw a rise in sales after the Bolt EV and Bolt EUC were put on sale as a result of a battery fire recall.
Currently, the top manufacturers listed below are selling electric automobiles on the market:
- Audi
- BMW
- Genesis
- Mercedes
- Volvo
“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.”
Tony Quiroga, the editor-in-chief of Car and Driver, claims that longer driving ranges and faster charging periods have enhanced the appeal of less expensive electric vehicles.
Additionally winning the 2022 Car and Driver Electric Vehicle of the Year award was the Hyundai Ioniq 5 ($41,000 starting Price).
“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
Although there is a wider range of electric vehicles available, it is expected that when production problems are resolved, EV sales will climb.
However, there are still a great deal of open issues.
The rise in interest in electric vehicles earlier this year, according to Jessica Caldwell, an industry analyst for Edmunds.com, may have been driven by rising gas prices.
People may decide against purchasing electric vehicles in the upcoming year given the recent dramatic fall in gas prices.
Meanwhile, the consequences of the Inflation Reduction Act are still undetermined.
This year’s bill changed the circumstances under which electric vehicles can be eligible for consumer tax credits.
Furthermore, it establishes a limit on the car’s price based on the buyer’s income.
A few factors also favor domestic production of electric car batteries.
The question isn’t how many electric vehicles will be eligible, says Corey Cantor, 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.
Due to their popularity and high sales, incentives can lead to an increase in the sale of electric vehicles.
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