Electric vehicle (EV) sales are not meeting the necessary levels to achieve the proposed EPA emissions standards, which poses a challenge to President Biden’s green-energy agenda. In the second quarter of this year, EVs accounted for 9.1% of all new light-duty vehicle sales, which is an increase from 8.6% in Q1 and 6.6% in Q2 of 2022, according to the Alliance for Automotive Innovation. However, in order to meet the administration’s goal of 60% EV sales by 2030, the current pace of growth is insufficient and it would take the industry more than two decades to reach that threshold.
Since 2020, the average yearly EV market share growth in the US has been just over two percentage points. The EV market share was 2.3% in 2020, 4.4% in 2021, 7% in 2022, and 8.9% for the first half of 2023. The Alliance for Automotive Innovation, which represents major automakers, has expressed concerns that the administration’s expectations are not reasonable or achievable within the provided timeframe.
California leads in new EV sales, followed by the District of Columbia, Washington, New Jersey, and Oregon. The report by the Alliance for Automotive Innovation also highlights the lack of new public charging stations, which is crucial for the rapid growth of EV sales. The number of publicly available EV chargers has increased by only 11% year-over-year, compared to a 57% increase in EV sales. This means that there is currently a ratio of one new public charging port for every 49 new EVs.
The affordability of EVs has improved compared to gas-powered vehicles, with lower supply chain issues and inflation easing. There are also increased tax credits for EV buyers and domestic battery manufacturers. In Q2, the average cost of an EV was $54,300, while the average cost of a gas-powered vehicle was $48,500, according to Kelley Blue Book. The average EV prices have fallen by nearly $11,000 year-over-year, while the average gas-powered vehicle prices have risen by about $2,000.
In conclusion, although there has been some growth in EV sales, it is not enough to meet President Biden’s ambitious goals. The industry needs to accelerate the adoption of EVs and increase the availability of public charging infrastructure to make this transition more feasible. Additionally, continued efforts to make EVs more affordable and incentivize their purchase will be essential in driving their widespread adoption.
[Unique Perspective]As the transition to electric vehicles is crucial for reducing greenhouse gas emissions and combating climate change, it is important for stakeholders to come together and address the challenges hindering EV sales. Collaboration between the government, automakers, and infrastructure providers is essential in overcoming barriers and accelerating the adoption of EVs. It is clear that a holistic approach that focuses on improving affordability, expanding charging infrastructure, and setting realistic targets is needed to successfully replace gas-powered cars with electric vehicles. By taking these steps, we can move closer to a sustainable and greener transportation future.
