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. According to an analysis by the Alliance for Automotive Innovation (AAI), EVs accounted for 9.1% of all new light-duty vehicle sales in the second quarter of this year, totaling just under 355,000 EVs.
This figure represents a slight increase from the previous quarter’s 8.6% and a significant improvement from 6.6% in the second quarter of 2022.
The Biden administration aims to implement strict tailpipe emissions rules that would require automakers to sell up to 60% EVs by 2030 and 67% by 2032. However, at the current rate of EV market growth, it would take more than two decades to reach the 60% threshold.
According to AAI data, the average yearly EV market share growth in the U.S. since 2020 has been a little over two percentage points. The market share average was 2.3% in 2020, 4.4% in 2021, 7% in 2022, and 8.9% for the first half of 2023.
The AAI, representing major automakers like General Motors, Volkswagen, Ford, Hyundai, and Stellantis, has expressed concerns about the administration’s expectations, deeming them “neither reasonable nor achievable in the timeframe provided.”
California led in new EV sales in the second quarter, accounting for 25.9% of the market, followed by the District of Columbia (18.7%), Washington (17.2%), New Jersey (13.5%), and Oregon (13.4%).
However, the U.S. is falling behind in the development of new public charging stations, which are crucial for the rapid growth of EV sales. In the first half of this year, the number of publicly available EV chargers increased by only 11% compared to a 57% increase in overall EV sales. This translates to one new public charging port for every 49 new EVs. Currently, there are approximately 140,000 public charging outlets in the U.S. for 3.7 million EVs, resulting in a ratio of 26 EVs per charger.
In the past year, EVs have become more affordable compared to gas-powered vehicles due to fewer supply chain issues and easing inflation. Additionally, there are increased tax credits for EV buyers and domestic battery manufacturers through the Inflation Reduction Act. The average cost for an EV in the second quarter was $54,300, while the average cost for gas-powered vehicles was $48,500, according to Kelley Blue Book.
