Credit reporting agency Experian recently published consumer data in the electric vehicle market, revealing hidden strengths in the small but thriving segment.
According to Experian’s January report, Tesla gained a strong competitive advantage in the luxury market against BMW, which earned a distant second to the EV brand in 2022. In total, the U.S.-based manufacturer had gained 49,917 registrations by the end of the month, 60% more than the German automaker’s 31,070. For Tesla, this represents a 34% year-over-year increase in the segment, which includes both fuel and electricity powered vehicles.
Experian also reported that the majority of U.S. EV registrations in January were for domestically sourced vehicles, which the firm attributes to tax credits in the Inflation Reduction Act. The top eight electric car models for the month were split between Tesla, Ford and Volkswagen, which recently started building its ID.4 electric SUVs at a facility in Tennessee. Since the introduction of the Biden Administration’s IRA, multiple international brands have ramped up efforts to build new factories in North America, although talks are currently underway to allow foreign automakers to qualify for EV incentives.
The data highlights how the market has started to shift in favor of electrification, despite its niche status. Experian reported that the 87,708 EVs sold in January accounted for 7.1% of the month’s light vehicle sales, beating last year’s total of 50,338 units and 4.3% market share. Challenges still remain in the segment, however. While most consumers are drawn to the technology for its cost-saving benefits, electric cars continue to be some of the most expensive items in most lineups. Supply chain disruptions and production halts also complicate OEM efforts to ramp up manufacturing. It remains to be seen if the early year success is a sign of recovery or a fluke.