Electric vehicles:Electric vehicles have become more popular than ever before, and manufacturers besides Tesla are becoming more recognized.
Matt Degen, an editor at Cox Automotive, a website and company devoted to cars, described the situation best.
“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.”
5.6% of the automobiles sold in 2021, according to Kelley Blue Book, were electric vehicles.
Two years ago, only 1.4% of EVs were sold.
Norway was referenced by BloombergNEF expert Corey Cantor in connection to the performance within the global markets.
The 5% market share underlined a crucial turning point for greater adoption.
dBloombergNEF added that markets like China and Europe experience similar changes.
Although plug-in hybrids were listed among the “electric vehicles” by Bloomberg, battery-power vehicles account for the majority of them.
5% can seem like a little amount, but it could signal the beginning of something becoming common.
For instance, according to Cox Automotive, Hyundai’s overall US market share and the market share for electric vehicles are comparable.
Purchasing a Hyundai doesn’t feel out of the ordinary, and the same is true for electric cars.
However, 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.”
Supply & demand
The distribution of parts has been a problem for the entire year 2022 in the global car industry, which has hindered production for a range of vehicles.
The unexpected popularity of a few electric vehicle models caught the manufacturers off guard.
As an example, the 2021 Mustang Mach-E was the first electric vehicle to compete with Tesla sales.
Since then, Ford has had trouble keeping up with demand.
According to Darren Palmer, vice president of electric vehicle initiatives at Ford, every Mach-Es produced by the company was made in response to a specific customer 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 version of the F-series pickup truck made by Ford.
The factory where the Lightning is made in Michigan is also being expanded by the manufacturer.
The selection of electric vehicles on the market has also been expanding.
Eleven electric vehicle models sold more than 1,000 units in 2019, claims Kelley Blue Book.
This year, there were 26 different models.
Hyundai and Kia launched new models for the Hyundai Ioniq 5 and the Kia EV6 even though they already sold electric vehicles.
The R1S SUV and R1T truck were released by Rivian.
General Motors also observed an increase in sales after the Bolt EV and Bolt EUC were brought to the market after a battery fire recall.
The market currently provides electric cars from the premium manufacturers listed below:
“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.”
According to Tony Quiroga, editor-in-chief of Car and Driver, cheaper electric vehicles have become better as a result of longer driving ranges and faster charging periods.
Additionally winning the 2022 Car and Driver Electric Vehicle of the Year award was the Hyundai Ioniq 5 ($41,000 starting MSRP).
“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.”
Inflation Reduction Act
Despite the availability of a wider choice of electric vehicles, it is predicted that EV sales will rise as production problems are resolved.
However, several questions remain unsolved.
According to Jessica Caldwell, industry analyst for Edmunds.com, gas prices may have something to do with the rise in interest for electric vehicles earlier this year.
The recent steep drop in gas prices may make consumers think twice about purchasing electric vehicles next year.
The consequences of the Inflation Reduction Act, meanwhile, remain undetermined.
The terms under which electric vehicles might be eligible for consumer tax credits were changed by the act, which was passed this year.
Furthermore, it establishes a limit on the car’s price based on the buyer’s income.
A few requirements also support indigenous production of the batteries that power electric vehicles.
The question isn’t how many electric vehicles will be eligible, says Corey Cantor, but rather which one.
“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 may lead to an increase in the sale of electric vehicles.