In a groundbreaking revelation, the Alliance for Automotive Innovation has published its comprehensive analysis of the U.S. electric vehicle (EV) market for the third quarter of 2023. The Get Connected Electric Vehicle Report delves into the dynamic landscape of EV sales and purchasing patterns across all 50 states.
Rise in EV Models and Sales
The report showcases a significant expansion in the variety of electric vehicles available in the U.S., with a total of 111 models, including cars, utility vehicles, pickup trucks, and vans, hitting the market in Q3 2023. Light trucks notably represented a substantial 74 percent of the EV market. The quarter witnessed a commendable increase in EVs’ share of new light-duty vehicle sales, rising from 9.1 percent in Q2 2023 to 10.1 percent in Q3 2023, and marking an impressive progression from 7.1 percent in Q3 2022. Furthermore, over 378,000 EVs were sold in the U.S. during Q3 2023, reflecting a remarkable 63 percent surge compared to the same period in 2022.
The top five states leading in EV sales during Q3 2023 were California (28.1 percent), Washington (21.7 percent), the District of Columbia (19.3 percent), Colorado (17.9 percent), and Oregon (16.3 percent).
Challenges in Public EV Charging Infrastructure
While EV sales are soaring, the report underscores a critical challenge in the form of lagging public EV charging infrastructure. The installation of public chargers across the U.S. is failing to keep pace with the burgeoning demand. In the first three quarters of 2023, publicly available EV chargers increased by 26 percent year-over-year, while EV sales escalated by 59 percent. This has resulted in a concerning ratio of 48 EVs for every new public charging port, emphasizing the urgent need for infrastructure expansion.
The existing ratio of 26 EVs for every public charging port, totaling 151,303 outlets in the U.S., underscores the pressing requirement for an additional 1.1 million public chargers to meet the National Renewable Energy Laboratory’s infrastructure estimate for 2030. Meeting this target necessitates the installation of 414 chargers daily for the next 7.2 years, or almost 3 chargers every 10 minutes, until the end of 2030.
Diverse State Dynamics Impacting EV Market Share
Contrary to the assumption that EV mandates alone drive market trends, the report highlights the diverse landscape of EV adoption across states. While California and nearly a dozen other states have adopted the Advanced Clean Cars II regulation, which mandates 35 percent of auto sales to be zero-emission by 2026 and 100 percent by 2035, one-third of ACC II states lag behind the national average of 9.28 percent EV market share.
The analysis reveals coastal regions on the west and east coasts exhibit higher EV market share rates compared to the interior of the country. States in the top third of median income brackets boast three times the EV market share of states in the lowest third bracket. Additionally, population density, political affiliations, and income brackets significantly influence EV market share, emphasizing the need for a nuanced approach to EV adoption.
Industry Investments and Future Transition
In a bid to meet the surging demand for EVs, automakers and battery partners have committed a staggering $125 billion for the expansion of EV and battery production across the U.S. and North America. The success of the transition to electrification, aligned with government requirements, hinges on factors beyond the vehicle itself.
The Alliance for Automotive Innovation’s report sheds light on the evolving landscape of the U.S. EV market, emphasizing both the positive strides and the hurdles that must be overcome to achieve a seamless transition to electric vehicles.
