Electric Vehicle Sales Expected to Reach New Heights in U.S.
The U.S. is on the verge of witnessing a surge in electric vehicle (EV) sales, potentially setting a new record in the third quarter. This anticipated rise is largely driven by the impending expiration of a $7,500 federal tax credit at September’s end.
Stephanie Valdez Streaty, who serves as the director of industry insights at Cox Automotive, highlighted the urgency in the market. She commented, “There’s this sense of urgency. And I think dealers and manufacturers are taking advantage of this time to really create this sense of urgency and also offering some amazing deals to consumers. So from a consumer’s perspective, it’s, if you’re thinking about an EV, now’s the time to get one.”
Valdez Streaty emphasized the competitive challenge U.S. automakers face, particularly in catching up with China. The Asian giant has considerably reduced its EV prices, a move that U.S. manufacturers will need to counter post-September.
Price as a Key Barrier
The biggest obstacle in adopting electric vehicles remains their cost. “The biggest challenge or barrier to EV adoption is price. And we need not just one [model type] but we need many options for consumers, especially as we’re moving from early adopters to mainstream,” she explained.
Chinese manufacturers have excelled in making EVs affordable, capturing major market shares globally. In China, nearly half of the electric vehicles sold are priced lower than their gasoline counterparts.
Challenges in the U.S. Market
Despite China’s success globally, it faces hurdles in penetrating the U.S. market. High tariffs, currently set at 100% on Chinese EVs, along with the absence of a local dealer network, and concerns surrounding national security and trade policies, hinder their entry.
On the broader U.S. sales landscape, Valdez Streaty noted that, so far, tariffs have not evidently impacted vehicle prices.
—
Read More Michigan News
