Automakers are facing a bumpy road with EV demand in the United States, and the numbers coming out from early this year don’t bode well for the rest of 2024. Automotive News reported on numbers from S&P Global Mobility that show new EV sales climbed 15 percent in January, down a great deal from the 52 percent growth seen in 2023.
EVs accounted for 7.8 percent of new vehicle registrations in January, up from 7.1 percent in January 2023. Market share for EVs increased by two points in 2023, reaching 7.7 percent. Even so, some brands performed better than others. Tesla’s sales climbed 15 percent in January, while Ford and Chevy saw declines. Several others had significant increases, including Rivian, Mercedes-Benz, Hyundai, and Kia.
As Automotive News pointed out, the slowing of EV growth is indicative of the shift in the types of buyers shopping for electric models. The market is now past the early adopters willing to pay a premium for the latest, greatest thing. More mainstream buyers aren’t as happy to pay more, and concerns with the public charging situation haven’t done much to bolster confidence in EVs over comparable gas models.
These numbers support the moves we’ve been seeing from major automakers. Ford pulled back on investments in production facilities, and General Motors backtracked on its decision to build new hybrids after seeing wavering EV growth. That said, the doom and gloom in the media and on social media are overblown, as it’s clear EV sales are growing, just at a slower rate than many had hoped.
[Image: Roschetzky Photography via Shutterstock]
Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter.
