Analyzing the US Electric Vehicle Market
The sale of one million electric vehicles (EVs) is expected in the US this year, indicating a trend towards electric, however major auto manufacturers like Ford and General Motors have announced a reduction in EV investments due to perceived lack of consumer interest. There are several barriers impeding the transition to EVs, including lack of charging infrastructure, competition from China, and the recent UAW strike. Despite China currently leading in EV manufacturing, the Biden administration has aimed to catch up through major investments in the Inflation Reduction Act, while in California, Gov. Gavin Newsom has mandated that all vehicles sold in the state must be zero-emission by 2035.
US on track for 1 million electric vehicle sales amidst market cool-down
Despite predictions of hitting one million electric vehicle (EV) sales in the US this year, signs indicate a potential cooling in the EV market.
Industry analyst Andrew Hawkins discussed the dynamics of the EV market, including factors affecting its current trajectory.
- Automakers like Ford and General Motors are cutting back on EV investments, citing slackened consumer interest.
- Hurdles like reduced automaker investment, UAW strikes, competition from China, and insufficient charging infrastructure hamper the move toward EVs.
- Though China leads in EV production, the Biden administration aims to compete through the Inflation Reduction Act.
- In a push for zero emissions, California Governor Gavin Newsom has mandated that all vehicles sold in the state by 2035 must be zero-emission.
Hawkins sees the millionth US EV sale as a positive sign, indicating a shift toward EVs. However, he notes that obstacles remain, preventing EVs from becoming a mainstream choice. He said, “Prices need to drop significantly. Currently, many view EVs as a luxury product.”
The Biden administration has taken steps to boost domestic EV production, offering a $7,500 tax credit for US-manufactured EV purchases. This move is expected to help the US compete with China, the current global leader in EV manufacturing.
California is spearheading the zero-emissions drive in the US. Governor Gavin Newsom issued an executive order requiring all vehicles sold in the state to be zero-emission by 2035, a move that Hawkins believes will help make EVs more widespread.
Looking to the future, Hawkins stated, “EVs could become the majority of vehicles sold in the US within the next five years.”
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