The United States has caught up with Europe and other regions in EV adoption, surpassing Germany to become the world’s second-largest electric car market. American EV sales jumped 79% year-over-year in the first quarter of 2023, moving past Germany. Only China is larger.
EV tax credits played a crucial role in spurring sales, helping the U.S. automotive industry. Sales of combustion engine cars were flat, while EVs surged ahead.
Tesla represented 62.7% of EV sales, with the Model Y and Model 3 taking the top spots. GM was a distant second, Volkswagen had 6.3% of the market. Plug-in hybrids had Stellantis at 43.9% and BMW at 16.1%.
Counterpoint is optimistic about American EV sales going forward. Revised rules narrowed the list of cars that qualify for tax credits, but they’re still poised to influence demand. Economic recovery could drive interest. Increasing domestic production of EVs should expand the range of cars eligible for credits.
EV sales were poised to spike. California and New York will require all new passenger car sales to be electrified by 2035. GM has committed to going all-electric. That accelerating growth is already underway.
