A Spike in EV Sales in the US Helps Drive It to Surpass Germany and Become the 2nd Largest Market behind China

Image: Tesla

A spike in EV sales following recent tax credits has enabled the United States to become the 2nd largest market for them in the world. EV sales have been steadily increasing in America since the start of the pandemic but according to research done by Counterpoint, sales have increased by 79% YoY in Q1 2023. The tax credit subsidies have largely been attributed to the recent surge in sales. The report explains how the EV tax credit (up to $7,500) which applies to ~20 models due to its requirements, has allowed select manufacturers to hold their own lead in the US EV sales market.

Unsurprisingly, Tesla holds the top spot in those sales accounting for over 62% of battery EV (BEV) sales. Stellantis Ventures, the joint venture between Fiat Chrysler Automobiles and the French PSA Group which comprises 14 automotive brands, accounts for an impressive 43.85% of the Q1 2023 plug-in hybrid EVs (PHEVs) sales. BMW and Toyota are neck and neck in 3rd and 4th place respectively for PHEVs with GM holding a slight lead over VW at the end of the BEV list.

US EV Q1 2023 Sale Breakdowns (per Counterpoint)

Chart: Counterpoint

Counterpoint Research Director Jeff Fieldhack commented that the as the US economy continues to show signs of recovery combined with the tax credits, the surge is expected to continue if the conditions remain the same. So a spike in EV sales could actually, at least for the immediate future, become the new norm.

“With the US economy showing signs of recovery, the auto industry, particularly the EV sector, is being helped by government policies announced last year. Tax credits for new and even used EVs are helping consumers, while investments in streamlining the EV battery supply chain, the establishment of a robust network of EV charging stations and the setting up of battery recycling plants nationwide will all support EV sales growth. Therefore, we expect US EV sales to reach around 1.5 million units in 2023 if economic conditions continue improving.”

Join the discussion for this post on our forums...

Peter Brosdahl
As a child of the 70’s I was part of the many who became enthralled by the video arcade invasion of the 1980’s. Saving money from various odd jobs I purchased my first computer from a friend of my dad, a used Atari 400, around 1982. Eventually it would end up being a lifelong passion of upgrading and modifying equipment that, of course, led into a career in IT support.

Recent News