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Kelley Blue Book in their recent reports stated that no segment is growing more speedily and persistently than electrified vehicles (combination of electric vehicles (EVs), hybrids and plug-in hybrids), while the U.S. automotive market has experienced growth this year in approximately every vehicle segment. After the pandemic hit in 2020, new-vehicle demand is at all time high, while inventory-shortage challenges and supply-chain struggles remain. The interest of general public in electrified vehicles continues to rise.
As automakers manufactures more electrified vehicles, buyers are highly eager to purchase them. According to an analysis of Q2 2021 data from Kelley Blue Book, sales of pure EVs crossed 100,000 units and hybrid sales were over 250,000 units in the quarter. Sales of electrified vehicles for Q2 climbed a stumbling 201.1% YoY, which is 375,000 when EVs and hybrids are combined. Accordingly, electrified vehicles are capturing much larger market share as consumer’s demand grows. Electrified vehicle sales accounted for 8.5% of total sales in Q2, up from 7.8% in Q1 and 4.2% in Q2 2020.
According to AAA, fuel prices continue to increase (40% from the beginning of the year) and previous research shows that when prices are high, end consumers start thinking about more efficient solutions (vehicle in this case). In a latest Cox Automotive ‘quick poll,’ 30% of buyer suggested that they would either be “extremely likely or very likely” to consider an EV for their next purchase which is significantly higher than the usual one. In fact EV consideration usually hovers in the 5% to 7% range as per the Brand Watch study of the Kelley Blue Book.
“While low inventory could impact the market’s current trajectory, it’s still safe to say that 2021 will be a record-setting year for electrified vehicles in the United States – and we’re confident that 2022 will beat 2021. Automakers continue to release more electrified vehicles, whether hybrid versions of established nameplates or all-new electrified models. Car buyers are increasingly attracted to these options. The electrified market is currently dominated by hybrids and plug-ins, but automakers future plans favor pure electric vehicles. The progress may be slow, but the path is set,” said senior managing editor for Kelley Blue Book, Matt DeLorenzo.
More EVs and hybrids are available today than ever before for the shoppers. Hybrid off-roaders like the Jeep Wrangler 4xe fulfil the needs of the outdoorsy crew. Luxury seekers will find more plug-in hybrid models available in rising volumes. EV sales are charged up by new products like the Ford Mustang Mach-E and Volkswagen ID.4. While Telsa is still leading in the EV market, its sales is increasing while the market share is declining. In Q1, Tesla’s EV segment share was at 71% to 64% in Q2. It was 83% a year ago.
Assistant vice president of Research & Development for Cox Automotive Mobility, Lea Malloy, said, “We believe battery-powered vehicles will be the dominant form of transportation in the future. That day is still a long way off, but we’re encouraged by the continual growth in interest in electrified vehicles. The current trajectory is an important wake-up call for the industry—we all need to be doing more to prepare for a future with more electrified vehicles.”