US Foresees 2023 Record -Breaking Sales in EVs with 10.2 % Increase from Last Year

Nov 24, 2023 12:14 AM EST

Red Tesla Car — (Photo : Pexels/Kevin B)

The US electric automobile (EV) market is expected to grow rapidly in 2023. The corporation sector benefits from greater electric automobile (EV) sales this year than last.

Popularity of EVs to rise in 2023

Reuters reported that industry strategists expect November US vehicle sales to rise. U.S. retail and non-retail new automobile sales are forecast to reach 1,236,000, up 10.2% from last year. Strong demand for new vehicle models and increased inventory levels drove this surge.

Moreover, The Economic Times predicts record US EV sales in 2023. In contrast, 7.3% of 2022 new automobiles made this much. Research groups predict that this surge will lead to over a million EV sales in a year, a first for the country. Sold autos would reach 1.3 million to 1.4 million. EV sales are rising due to car availability, says J.D. Power statistics and analytics president Thomas King.

EV sales are rising due to greater car availability, according to J.D. Power statistics and analytics president Thomas King. Despite these gains, the US trails China, Germany, and Norway in EV adoption. Bloomberg NEF predicted 33% and 35% EV sales in China and Germany in the first half of 2023.

However, Norway led EV sales with 90% during the same period. These countries are challenging the U.S. in the global electrification race, despite its EV market growth. Atlas Public Policy reports a U.S. electric vehicle (EV) market boom. September this year had a record 136,000 EV sales, up 67% from September 2022. EV adoption is rising nationwide, as shown by these statistics.

EVs currently account for 11% of new vehicle sales, indicating a major consumer movement toward electric transportation. Tesla, a top EV maker, has 59,000 sales, its second-highest ever.

Tesla dropped the price of its popular vehicle models many times this year, according to VOA. In order to compete, other automakers had to match these price cuts.

Concurrently, automotive companies are increasingly providing enhanced incentives for their electric models, and dealerships are offering more substantial discounts as their EV inventories grow.

The Inflation Reduction Act

Forbes states that the Inflation Reduction Act aims to reduce health care and pharmaceutical costs, address climate change, and tax big firms. Democratic efforts to pass President Biden's ambitious healthcare, climate change, and wealth tax measures were rewarded.

Despite its name, the "Inflation Reduction Act," is unlikely to cut inflation. Still, it's a major law that solves long-standing issues. It also includes plans to increase tax credits for buying certain new and used electric vehicles. This will make EVs more affordable for buyers by lowering prices by $3,750 or $7,500, based on certain criteria.

Furthermore, the decreasing costs of electric car batteries, driven by more affordable materials like lithium, are also making electric vehicles increasingly accessible. Forbes also states that it is a slimmed -down version of the Build Back Better bill.

The Inflation Reduction Act is the largest investment fighting climate change in the country's history. As well as, lowering the cost of prescription drugs, and increasing taxes on corporations.