URGENT UPDATE: Global electric vehicle (EV) sales have surged by 21% this year, but North America is facing a concerning decline, with sales down 1%, according to new data from Benchmark Mineral Intelligence. This alarming trend comes as the U.S. grapples with significant policy changes, tariffs, and the recent end of the $7,500 EV tax credit that has historically incentivized buyers.
Between January and November 2023, North America sold only 1.7 million EVs, a stark contrast to 11.6 million in China and 3.8 million in Europe. This disparity raises questions about the future of the U.S. EV market, especially as automaker executives, including Ford CEO Jim Farley, warn that U.S. EV market share could plummet to around 5% in the near term.
The downturn in U.S. sales can be attributed to several factors, including the recent end of the EV tax credit in September and a rollback of regulations initiated by the previous administration that aimed to bolster the EV transition. Elon Musk’s Tesla, despite being the world’s most valuable car manufacturer, has reported challenges in maintaining its sales momentum. While Tesla has performed better than its competitors during a recent market dip, the company is in a race against time to prevent a second consecutive year of declining sales.
Moreover, other U.S. EV manufacturers, such as General Motors and Rivian, are also feeling the impact of slowing demand, leading to layoffs and restructuring efforts in response to the market’s shifting dynamics.
In stark contrast, China continues to dominate the EV landscape, with overall sales up by 19%. The country’s leading EV manufacturer, BYD, has faced challenges at home due to intensified competition but achieved a record for EV exports in October 2023. The global demand for EVs remains strong, bolstered by an expanding array of models and supportive policy incentives, according to Charles Lester, data manager for Rho Motion, the Benchmark subsidiary behind the report.
As the EV market evolves, all eyes will be on the upcoming policy changes and market strategies that could significantly impact future sales in North America. The implications for consumers, manufacturers, and the environment are vast, highlighting the urgent need for innovative solutions to revitalize the U.S. EV sector.
Stay tuned for further updates as this developing story unfolds.
