In North America, the USA has always been the tone-setter in the automotive industry. And given Americans' love of large vehicles and pickup trucks, it was no surprise that the U.S. market lagged behind Europe and other regions around the world when it came to adoption of electric vehicles by consumers.
However, recent tax credits for the purchase of EVs introduced there are changing the game. Recent data shows an increasing number of auto buyers making the switch to battery-powered models.
Increased EV sales in the United States
Counterpoint Technology Market Research reports that U.S. sales of electric vehicles jumped 79 percent year-on-year in the first quarter of 2023. That has led to the USA overtaking Germany to become the world's second-largest market for this type of vehicle. Only China sits in front, says the firm.
Even as sales of electric vehicles have increased in the United States, Counterpoint notes that sales of gasoline-powered models have remained stable.
When it comes to dominant brands, it's no surprise to find Tesla in the lead with 62.7 percent of sales in the first quarter of this year, with the Model 3 and Model Y the top sellers. Tesla's share has been larger in the past, which means that other manufacturers are quietly eating into its market share. However, the automaker’s dominance is still impressive. To give you an idea, Tesla sold more electric vehicles during Q1 2023 than the next 18 manufacturers (grouping 34 brands) combined.
In second place is General Motors, with its two versions of the Bolt and owners of 7.6 percent of EV sales. Volkswagen is third with its ID. 4, taking 6.3 percent of the pie.
Plug-in hybrids are a different story in the American market. There Stellantis leads the way with 4xe versions of the Jeep Wrangler and Grand Cherokee, as well as the PHEV version of the Chrysler Pacifica minivan. In all, Stellantis has a 43.9 percent share of the PHEV market. BMW comes second with 16.1 percent and Toyota is third with 15.4 percent, again according to Counterpoint.
Obviously, with the electric commitments made by automakers and with a host of new models arriving on the North American market in 2024, the USA's place as the world’s second-biggest EV market will only solidify over time.
