Demand for electric vehicles (EVs) has continued to increase worldwide, and now the U.S. is on pace to sell a record 1 million vehicles in 2023.
An analysis by Cox Automotive determined that annual EV sales nationwide should hit a record 1.33 million units by the end of the year. If sales continue at the same pace, they will be 16.3% higher than last year.
The market share of EVs is currently 6.5%, which is a 25% increase from the same time last year.
Lower prices for EVs have helped this percentage, as Cox reported that the average price for an EV has decreased by $9,370, bringing the average total to $55,488.
Cox’s analysis suggested that EV sales also benefited from a high U.S. supply estimated to be “above 90,000 units for the first time.” This represents a significant jump from the roughly 21,000 vehicle supply from June 2022.
Sales have steadily increased in the last year, but the supply of EVs has been growing at a higher rate.
Vehicle sales, in general, have gone up in the last year, as Cox reported that 7.65 million units were sold in the first half of 2023. The 11.6% increase in the past year resulted in Cox bringing their estimated sales for 2023 to 15 million vehicles.
The strong first half of 2023 sales were surprising to Jonathan Smoke, chief economist at Cox, as many expected sales to struggle.
“We came into 2023 concerned about affordability, supply constraints, and a fragile economy,” said Smoke. “But the jobs market has remained healthy, and consumers have found a way to buy new wheels.
“As we close the first half, the market is showing signs of being more balanced, with smaller, more predictable changes in sales and less news about big price changes. A year from now, we might look back at this point as the beginning of a return to normal.”
President Joe Biden and the White House announced plans to have at least half of all vehicles be electric by 2030, a goal he is attempting to accomplish through various incentives. Laws such as the Inflation Reduction Act add and expand “tax credits for purchases of new and used EVs,” according to a press briefing.
The White House has said the creation of new laws “will lower the cost of EVs and EV charging infrastructure; increase consumer demand and competition; promote equity and inclusion; and accelerate the growth of the EV market.”
Many cities have also begun using EVs.
Authorities in Dallas recently announced that the City would be spending $12 million to establish and maintain (EV) charging infrastructure.
The Dallas Express reported that these funds, which will come from taxpayers, will help accommodate the demand for roughly 20,000 EV charging stations expected to be needed within the next five years.
