On today’s episode of CBT Now, Tom Kondrat, Global Lead for Advanced Analytics with Urban Science, will analyze the latest data from the company’s Quarterly Electric Vehicle Retail Sales Report and offer insights into the industry’s growth and market trends.
In May 2024, Urban Science published its first microstudy on electric vehicles (EVs). The report offered a wealth of information, and due to high demand, Urban Science has decided to release a quarterly report that focuses on the auto industry, sales figures, and trends in EVs.
While the overall automotive industry is flat compared to last year, EVs and hybrids are growing exceptionally and are up 16%, outpacing the entire industry. This growth is expected to continue well into Q4. BEVs, or battery electrics, are up 12% in Q3, skyrocketing since Q1 when they were only up by 1-2%.
It’s estimated that this year, the auto industry will have sold two million EVs (BEVS, PHEVs, and HEVs) by the close of October 2024, which accounts for approximately 22% of all sales.
Despite these stellar statistics, there continues to be a dominating narrative that there is a lack of demand for EVs. However, Kondrat suggests supply and demand are slowly starting to realign as automakers release new models and offer new incentives. These results prove that there is indeed demand amongst consumers. While this growth is slower than manufacturers would like, despite their significant investments, it’s crucial to continue to push for EVs to drive sales.
California, Florida, Texas, New York, and New Jersey continue to lead the nation in EV sales. California also leads the nation in EV adoption due to the state’s heavy investment in EV infrastructure and (now discounted) Clean Vehicle Rebate Project, notably with the San Francisco market currently over 50% converted to EVs.
Recently, Florida surpassed Texas as the second-highest state for BEV sales, with sales up 30%. Despite the state not offering any state-endorsed incentives or yielding any expansive EV infrastructure, this is proof of pure organic demand from consumers driven by social adoption.
Kondrat emphasizes that consumer convenience is critical to getting more consumers to embrace EVs and plays a more significant role in consumer decisions than political affiliations, state regulations, and incentives.
To promote the ongoing growth of the EV) market and prevent stagnation in the future, all states must improve their EV infrastructure and prioritize convenience for consumers. This will increase sales and foster wider acceptance of electric vehicles, paving the way for a brighter and more sustainable automotive future!
"There is more infrastructure needed everywhere to sustain and grow… There needs to be continued investment to grow past 15% because [customer] convenience is still paramount." – Tom Kondrat
