A new J.D. Power study has revealed that the EV market could be growing much faster than previously thought.
Automakers are watching the EV market carefully for good news after pouring billions into production. The consumer research firm is still compiling data for its 2023 forecasts, which it expects to release in January. However, its analysts have preemptively revealed that they expect the market share of EVs to reach 12% next year, while it currently remains at 7%. While some car manufacturers may be disappointed by the small increase, J.D. Power had an important clarification to make on this trend.
Traditionally, market analysts have predicted low EV sales for two reasons: poor availability and dismal sales numbers in comparison with the rest of the market. However, J.D. Power believes that these metrics have led experts to falsely conclude that consumer’s simply aren’t interested in the technology. Rather than comparing EV sales to the total volume of vehicle purchases, its researchers instead argue for a more nuanced view.
The issue, J.D. Power argues, is not that consumers aren’t willing to drive EVs, but that external factors are preventing them from doing so. This means that EV market share should be calculated based on the areas where buyers actually have access to the products, and should exclude areas with low availability. When taking availability out of the equation, J.D. Power found that the total market share for EVs is actually 20%, far higher than the official 7% quoted above.
While experts remain uncertain about what economic fortunes next year will bring to the auto-industry, the J.D. Power clarification on the EV market should not be ignored. If its researchers are right, then, as supply chain issues continue to resolve and battery-powered cars arrive in more areas, next year could see EV market share increase far beyond 12%.
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