In a remarkable turn of events, the US has claimed the second spot in the global electric vehicle (EV) market, trailing only behind China. Counterpoint reports that the first quarter of 2023 saw American EV sales leap a staggering 79 percent compared to the previous year, pushing the US ahead of Germany in EV adoption.
EV tax credits have seemingly been the key driver of this surge, with a significant impact not only on EV sales but potentially also on the US automotive industry. While combustion engine car sales remained static, EVs took off in the market, as per Counterpoint’s assessment.
No prizes for guessing the frontrunners in this green race. Tesla stood as the clear winner, scooping up 62.7 percent of the total EV sales for the quarter. Its Model Y and Model 3 vehicles secured the top two positions. GM, albeit a far-off second, managed 7.6 percent with its Bolt EUV and Bolt models, followed by Volkswagen with a 6.3 percent share, courtesy of the ID.4 model.
When it comes to plug-in hybrids, Stellantis led the charge with nearly 43.9 percent, thanks to Jeep’s PHEV Wrangler and Grand Cherokee models and the Chrysler Pacifica minivan. BMW and Toyota followed suit with 16.1 and 15.4 percent respectively.
Looking forward, Counterpoint is upbeat about the prospects of American EV sales. Despite revised rules that trimmed down the list of cars eligible for tax credits, these credits are likely to continue boosting demand. Coupled with the initial stages of economic recovery, the US EV market could see even more growth. Also, increased domestic production of EVs will add to the range of cars eligible for credits.
As the environmental regulations become stricter with states like California and New York demanding all new passenger car sales to be electrified by 2035, the rise of EV sales was inevitable. With GM also vowing to go all-electric around the same timeframe, this trend is expected to continue. If Counterpoint’s analysis holds water, the green wave of accelerating growth in the US EV market is well and truly here.