Electric Vehicle Sales Hit an Important Landmark in 2022

Electric vehicles (EV) are making important market share inroads in the US, with EVs accounting for 5.6% of all new cars sold in 2022. While still a relatively small figure, it represents major growth, as EVs made up just 1.4% of the market as recently as 2019.

Smaller markets like Norway have already passed the 5% market-share point, which appears to be an unofficial level pointing to wider adoption as statistics show the trend does not reverse from there.

Indeed, EVs have become easier to buy in the US, with more automakers besides Tesla gracing highways and parking lots. Models like the Ford Mustang Mach-E, the Hyundai Ioniq 5, the Kia EV6 and the Rivian R1T and R1S have become more prominent. Meanwhile, luxury brands like Audi, BMW, Mercedes, Genesis, and Volvo have also added EVs to the market.

The challenge with electric automakers has previously been with supply, not demand. An even greater variety of EVs is coming onto the market next year. This, coupled with the easing of production problems that hampered production in 2022, should help EV sales climb even more.

However, there are headwinds. The spike in costs to fuel up at the pump earlier this year drove many more people to consider EVs, but with gas prices falling significantly in recent months, some of the new appetites might wane. Additionally, EV tax credit incentive plans, like this year’s Inflation Reduction Act, have yet to fully deliver the necessary boost to new sales.