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)
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.”