US electric vehicle sales surge, expected to exceed 1M in 2023

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Washington, United States: The sales of electric vehicles have witnessed a significant increase in the United States and it is expected that it will be hitting a record of 9 percent of all passenger vehicles.

The stats have been shared by Atlas Public Policy, which underlined that the sales have gone up from 7.3 percent in 2022, according to Reuters.

Expectedly, 2023 will be the first calendar year to touch the mark of 1 million in terms of the sale of EVs in the United States. The research firm has predicted the sales will be between 1.3 million and 1.4 million.

US still lags behind major nations

The researchers have underscored that despite such significant numbers, the US is still behind other nations, including China, Germany, and Norway.

Electric Vehicle | Credits: Shutterstock

According to the stats by BloombergNEF EV outlook, during the first half of 2023, the sales of EVs were 90 percent in Norway, 35 percent in Germany and 33 percent in China. These figures include the sales of both electric and plug-in hybrid EVs.

Factors contributing to the increase in sales of EV

Several reports have underlined that various factors have boosted the adoption of Electric Vehicles in the United States in 2023. However, in a word, prices have gone down, according to the reports by Reuters.

Throughout the year, the EV market leader – Tesla, has dropped the price of the vehicles multiple times, which apparently forced other automakers to make changes to survive in the competition.

It is to be noted that great incentives have been provided by the car companies on their electric models – to increase sales. At the same time, dealers have also offered discounts to build up the number of dealerships for electric vehicles.

The Inflation Reduction Act contributed towards the increase in tax credits for eligible new and used electric vehicle (EV) purchases, lowering costs for buyers by either $3,750 or $7,500, depending on specific criteria.

Change in electric car battery costs: The rates of electric car batteries have also been decreasing because of the reduction in the prices of critical battery materials, such as lithium. This is one of the factors contributing to the affordability of the EVs.

Logo of Tesla | Credits: Google Images

Some basic hurdles in the way of EV car sales

The EV market in the United States has been witnessing steady growth; however, there are some hurdles between the EV cars and the buyers.

According to the reports by Reuters, earlier EVs were a choice for higher-income families – who likely charged their vehicles at their homes. However, with the increase in consumers, improper public charging infrastructure remains a barrier, according to BloombergNEF. The issue has been addressed by various automakers – who are in talks with Tesla for its charging technology.

Tesla is known to have the strongest public charging network; it has been using the North American Charging Standards for its EV plugs. The remaining automakers have been operating on one called Combined Charging System (CCS).

Tesla charging point | Credits: Getty Images

Zero-emissions target of US states

Various US states have anticipated vehicle sales to be primarily zero-emissions. California and Washington have also outlined that by 2035, 100 percent of sales of new vehicles in the state will be zero-emission. At the same time, New Jersey has announced the ban on new gas-powered vehicles by the same year.