How has the electric car market fared up to November 2023, and how will it be in the future?
The US electric car market has fared well up to November 2023, with sales continuing to grow steadily. In Q3 2023, EV sales set a new record of 313,086 units, up 49.8% from the same period a year ago. This growth was driven by a number of factors, including increasing consumer demand, more product availability, and downward pricing pressure.
Tesla remains the dominant player in the US EV market, but its share is gradually declining. In Q3 2023, Tesla accounted for 50% of all EV sales in the US, down from 62% in Q1 2023. This decline is due to increasing competition from other automakers, such as Ford, Hyundai, and Kia.
The US EV market is expected to continue to grow rapidly in the coming years. According to Canalys, EVs will make up 18% of the total US auto market in 2023, and this share is expected to reach 39% by 2028. Many factors will contribute to this growth, such as:
Government incentives: The US government offers a number of incentives to purchase EVs, such as a federal tax credit of up to $7,500. The cost of EVs for customers is reduced by these subsidies.Falling battery costs: The cost of lithium-ion batteries, the key component in EVs, has been falling steadily in recent years. This makes EVs more affordable to produce and sell.Expanding charging infrastructure: The number of public charging stations in the US is growing rapidly. EV drivers now find it simpler to charge their cars thanks to this.Increasing consumer awareness and demand: Consumers are becoming more aware of the benefits of EVs, such as lower operating costs and reduced environmental impact. As a result, there is a growing need for EVs.
Here is a more detailed look at the US electric car market in November 2023
Tesla– Tesla remains the dominant player in the US EV market, with a market share of 50%. Tesla’s Model 3 and Model Y are the two best-selling EVs in the US.
Forad– Ford is the second-leading EV automaker in the US, with a market share of 10%. Ford’s Mustang Mach-E is the third best-selling EV in the US.
Hyundai– Hyundai is the third-leading EV automaker in the US, with a market share of 6%. Hyundai’s Ioniq 5 and Kona Electric are two of the most popular EVs in the US.
Kia– Kia is the fourth-leading EV automaker in the US, with a market share of 5%. Kia’s EV6 is one of the newest and most popular EVs in the US.
Other automakers– A number of other automakers are also selling EVs in the US, including Volkswagen, Audi, BMW, and Mercedes-Benz.
The future of the electric car market in the US
The US electric car market is expected to continue to grow rapidly in the coming years. According to Canalys, EVs will make up 18% of the total US auto market in 2023, and this share is expected to reach 39% by 2028.
Many causes will contribute to its expansion, such as:
Government incentives– The US government is committed to promoting the adoption of EVs. In addition to the federal tax credit, a number of states and municipalities also offer incentives for EV purchases.
Falling battery costs– The cost of lithium-ion batteries is expected to continue to fall in the coming years. This will make EVs more affordable to produce and sell.
Expanding charging infrastructure– The number of public charging stations in the US is expected to continue to grow rapidly. This will make it easier for EV owners to charge their vehicles.
Increasing consumer awareness and demand– Consumers are becoming more aware of the benefits of EVs, such as lower operating costs and reduced environmental impact. As a result, there is a growing need for EVs.
Here are some of the key trends that are expected to shape the US electric car market in the coming years
Increased competition from traditional automakers: Traditional automakers, such as GM, Ford, and Chrysler, are investing heavily in EV development. This increased competition will lead to more EV options and lower prices for consumers.
The rise of affordable EVs: The average price of an EV in the US is currently around $50,000. However, a number of automakers are working to develop affordable EVs that cost less than $30,000.This will increase the number of people who can purchase EVs..
The growth of the used EV market: The used EV market is expected to grow.