According to Counterpoint research, the United States has emerged as the second-largest electric vehicle (EV) market in the world, surpassing Germany and trailing only China. Historically, the US has lagged behind Europe and other regions in terms of EV adoption, but recent data indicates a significant shift. In the first quarter of 2023, American EV sales experienced a remarkable 79 percent year-over-year increase, contributing to its rise in the global rankings.
Counterpoint attributes this surge in sales to the influence of EV tax credits, which are believed to have played a crucial role in stimulating consumer demand. As a result, while sales of combustion engine cars remained stagnant, the EV market experienced substantial growth. This development is seen as beneficial not only for the electric vehicle sector but also for the broader US automotive industry.
Unsurprisingly, Tesla continues to dominate the EV market in the US, with a commanding 62.7 percent share of EV sales during the quarter. The Model Y and Model 3 secured the top two positions among the best-selling EVs. General Motors (GM) secured a distant second place with a 7.6 percent market share, primarily driven by the Bolt EUV and regular Bolt models. Volkswagen, thanks to its ID.4, accounted for 6.3 percent of the market. In contrast, when considering plug-in hybrids, Stellantis led the market with almost 43.9 percent share, largely due to Jeep’s PHEV Wrangler and Grand Cherokee models, as well as the Chrysler Pacifica minivan. BMW followed with 16.1 percent, primarily attributable to the X5, and Toyota reached 15.4 percent, boosted by the popularity of the RAV4.
Counterpoint remains optimistic about the future of EV sales in the US. While revised regulations have narrowed down the list of vehicles eligible for tax credits, they are still expected to have an influence on consumer demand. Additionally, the early stages of economic recovery are anticipated to further drive interest in electric vehicles. Furthermore, the expansion of domestic production of certain EV models, including the Volkswagen ID.4 and upcoming Hyundai models, is expected to broaden the range of cars eligible for tax credits, potentially boosting sales.
The spike in EV sales was inevitable, given the ambitious targets set by certain states such as California and New York. These states have mandated that all new passenger car sales must be electric by 2035, and major automakers like GM have already committed to an all-electric future around the same timeframe. If the current analysis proves accurate, the accelerating growth of the US EV market is already underway, reinforcing the country’s position as a major player in the global electric vehicle industry.
