The United States, which has historically trailed behind Europe and other regions in electric vehicle (EV) adoption, has now emerged as the world’s second-largest electric car market, according to research firm Counterpoint. Its estimates reveal that American EV sales experienced a remarkable 79 percent year-over-year increase in the first quarter of 2023, surpassing Germany’s sales figures. China remains the largest electric car market globally.
The availability of EV tax credits is believed to have played a crucial role in driving the surge in sales, benefiting not only the electric car segment but also the overall US automotive industry. While sales of combustion engine vehicles remained flat, EVs saw a significant boost, as reported by Counterpoint.
Unsurprisingly, Tesla dominated the market, accounting for 62.7 percent of EV sales in the quarter. The Model Y and Model 3 secured the top two positions in terms of sales. General Motors (GM) followed at a considerable distance with a 7.6 percent market share, mainly driven by the Bolt EUV and regular Bolt models. Volkswagen claimed 6.3 percent of the market, primarily attributable to the popularity of the ID.4. In the plug-in hybrid segment, Stellantis led with nearly 43.9 percent market share, thanks to Jeep’s PHEV Wrangler and Grand Cherokee models, along with the Chrysler Pacifica minivan. BMW followed at 16.1 percent with the X5, while Toyota’s RAV4 contributed to its 15.4 percent market share.
Counterpoint maintains an optimistic outlook on the future of EV sales in the US. Although revised regulations have narrowed down the list of vehicles eligible for tax credits, they are still expected to have a significant influence on demand. Additionally, the early stages of economic recovery are likely to drive further interest in electric vehicles. It is worth noting that the increasing domestic production of certain EV models, such as the VW ID.4 and future Hyundai offerings, will expand the range of cars eligible for tax credits.
The surge in EV sales in the US was expected, given the ambitious goals set by states like California and New York, which plan to mandate that all new passenger car sales be electrified by 2035. Major automakers like GM have also committed to transitioning to all-electric vehicles by the same timeframe. If Counterpoint’s analysis proves accurate, the acceleration of EV sales growth is already well underway in the country.
