US Electric Vehicle Sales Hit Record High... "Up to 1.4 Million Units Expected This Year"

Electric vehicle sales in the United States are expected to reach an all-time high this year. This is interpreted as an effect of the Inflation Reduction Act (IRA), which provides subsidies for North American-made electric vehicles.

[Image source=AP Yonhap News]

According to the Associated Press on the 23rd (local time), electric vehicle sales in the U.S. this year are estimated to account for 9% of total passenger car sales, reaching a record high. This is an increase from last year's electric vehicle sales share of 7.3%. The sales volume this year is expected to reach between 1.3 million and 1.4 million units. This will be the first year that annual electric vehicle sales in the U.S. exceed one million units.

The strong performance of electric vehicle sales in the U.S. this year is largely attributed to price reductions. Tesla, a leading electric vehicle brand, lowered the prices of several popular models multiple times throughout the year, and other car brands followed suit. The IRA subsidy, which offers up to $7,500 in tax benefits for purchasing North American-made electric vehicles, also played a significant role in reducing the financial burden on consumers. The implementation of the IRA has also contributed positively to vehicle price reductions by lowering the cost of batteries, a key component of electric vehicles.

However, the Associated Press pointed out that despite this sales growth, the U.S. still lags behind countries like China, Germany, and Norway. In China, electric vehicle sales in the first half of this year accounted for nearly 33% of all passenger cars. During the same period, the figure was 35% in Germany and 90% in Norway. These figures include both battery electric vehicles and plug-in hybrid EVs. The AP noted, "While the market share of electric vehicles in the U.S. is steadily increasing, obstacles remain," citing infrastructure issues such as charging facilities.