UPDATE: Global electric vehicle (EV) sales have surged by 21% this year, but North America has seen an alarming 1% decline, according to new data from Benchmark Mineral Intelligence. This stark contrast highlights significant challenges facing the US market amidst shifting policies and economic pressures.
Between January and November 2023, 1.7 million EVs were sold in North America, lagging far behind 11.6 million sold in China and 3.8 million in Europe. The decline follows the expiration of the $7,500 EV tax credit in September and ongoing supply chain disruptions, significantly impacting consumer purchasing decisions.
US automaker executives are sounding alarms. In September, Ford CEO Jim Farley warned that EV market share in the US could nearly halve to around 5% in the near term. The report attributes this “subdued” sales environment to the end of federal incentives, coupled with relaxed regulatory measures from the previous administration that previously aimed to bolster EV adoption.
Despite these challenges, Tesla, the world’s most valuable EV manufacturer, has managed to weather the storm better than many competitors. Data from Cox Automotive shows that Tesla’s performance in October was relatively stable, although the company is racing against time to avoid a second consecutive year of declining sales.
Other US EV manufacturers are struggling as well. Both General Motors (GM) and Rivian have recently announced layoffs in response to dwindling demand, indicating a broader crisis in the North American EV market.
Globally, the EV sector is thriving, with China leading the charge and witnessing a 19% increase in overall EV sales. Local giant BYD has faced increased competition but still achieved record exports in October, illustrating the contrasting realities between markets.
“Overall, EV demand remains resilient, supported by expanding model ranges and sustained policy incentives worldwide,” said Charles Lester, data manager for Rho Motion, the Benchmark subsidiary behind the report.
As the North American EV market grapples with these challenges, industry watchers are keen to see how manufacturers adapt to the evolving landscape. The future of electric vehicles in the US hangs in the balance, with immediate impacts on jobs, innovation, and environmental efforts at stake.
Stay tuned for updates as this story develops, and consider how these shifts in the EV market will affect your choices as a consumer in the coming months.
