Sales have recently surged in the U.S. to new registrations of about 1.4 million in 2023, up 40% from the prior year, driven by tax credits that make some models attractive to buyers. EV sales reached a record high in the second quarter of 2024 with an 11.3% year-over-year increase.
While Tesla still is the master of its game in the homeland market, its share has fallen a bit as other manufacturers have gained a foothold in the market with new models. These new entrants include an electric Chevy Blazer, Equinox, and Silverado, in addition to the Ford Mustang Mach-E and the F-150 Lightning.
Europe, too, had robust sales of EVs, with almost 3.2 million new registrations in 2023—a 20% increase over the previous year. Germany, France, and the United Kingdom provided large markets for EVs; during this time, battery-electric vehicle sales accelerated. Norway has a huge share of around 95% of new car sales that are electric—this places it at the forefront of the adoption rates across the region.
Electric vehicle sales are growing in developing markets—admittedly from a very small base. In India, EV registrations grew 70% in 2023. The general trend there and in similar regions, however, is the electrification of two- and three-wheelers which are more abundant and affordable than passenger cars.
Several reasons have combined to cause accelerated growth in the EV market, with further improvement in the technology, increasing their range, and introduction of more affordable models. Incentives given by the government in terms of tax credits and subsidies have made EVs accessible to more people.
Challenges remain, however, in the form of additional charging infrastructure and probably the effect that reduced incentives by the government in some regions will have. Innovating manufacturers and increasing product lines related to EVs keep the long-term outlook good despite these challenges.
In 2024, much of the electric vehicle manufacturing market is controlled by a few players who have carved a niche for themselves in leadership. Some of the key EV manufacturers include:
Tesla, as one of the early movers in the electric vehicle market, assumes a big market share in the global market. Though the company has been losing its grip on the market share, it still retains the main drivers of innovation and sales with models such as the Model 3 and Model Y. Its market strategy has largely been in increasing production capacity and efficiency in the supply chain.
It remains an EV market leader, especially in Europe. The ambition for EV growth is reflected in the increasing electric vehicle portfolio under its various brands such as Audi, Porsche, and the VW ID series. Currently, group-wide Volkswagen is working on ramping up production and cutting costs.
This is another key company, headquartered in China, in the production of electric vehicles. The company manufactures different models of electric vehicles in association with global brands such as General Motors and Volkswagen. It happens to be the most famous electric vehicle maker in China, and it has received greater attention owing to its development of low-cost electric vehicles.
Those are manufacturers who have been leading the growth in the EV industry through innovation and strategic partnerships, increasing their capacity to produce. Increasingly, companies among them compete for global market share.
In the United States, numerous incentives and tax credits are available in 2024 for the purchase of EVs. A few important ones include:
New Electric Vehicle Credit: Taxpayers who purchase new electric vehicles are eligible for a federal tax credit of up to $7,500. This credit applies to what the IRS is calling any “new clean vehicles,” which includes fully electric and some plug-in hybrid models. Starting in 2024, purchasers can transfer the credit to the dealer at the point of sale, reducing the vehicle purchase price immediately.
For buyers of used electric vehicles, there is a credit available of up to $4,000. The vehicle must be at least two years old, priced at $25,000 or less, and purchased from a dealer. This will help subsidize 30 percent of the vehicle’s price, helping make electric cars more within reach in the resale market.
Income Limits: The credits have limits on the amount of income eligible to avail of them, thereby making sure that only middle- and lower-income families benefit from them. Credits can be claimed by single filers making $150,000 annually or less, heads of households earning less than $225,000, and married filing jointly with incomes under $300,000.
Vehicle and Manufacturer Requirements: Certain criteria that the vehicle shall have to have final assembly in North America. There are also price caps for eligibility; usually, it is $55,000 for cars and $80,000 for SUVs, vans, and trucks.
Manufacturing Requirements: By 2024, at least 60% of the components or assembly of an EV battery must take place in North America; by 2029, that number jumps to 100%. This mandate was purposed to increase domestic manufacturing and decrease dependence on foreign suppliers.
Other Clean Vehicles: The definition of qualified vehicles has been expanded to include plug-in hybrids and hydrogen fuel cell vehicles—not just purely electric vehicles.
Many states offer additional rebates and tax credits, which can further bring down the cost of owning an electric vehicle. Among those, state incentives vary greatly in amount and certain eligibility criteria; some can be combined with federal credits for added savings.
The incentives in 2024 are geared toward a direction that lessens the up-front costs of electric vehicle adoption and makes access available to more people. This is supportive of the more comprehensive scheme of lowering carbon emissions through sustainable transportation.
Electric vehicle sales continue to grow, driven by increasing consumer demand and favorable policies. As the industry transforms, manufacturers who can offer quality products at competitive prices while providing an excellent consumer experience will likely lead this transition toward electric mobility. The coming years will be crucial in shifting towards a much more sustainable and environmentally friendly automotive future.
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