UPDATE: Global electric vehicle (EV) sales have surged by 21% this year, but North America is facing a concerning 1% decline, according to new data from Benchmark Mineral Intelligence. This alarming trend highlights a significant shift in the EV market, just as the US grapples with policy changes and supply chain disruptions.
The latest figures reveal that 1.7 million EVs were sold in North America between January and November 2023, a stark contrast to the 11.6 million sold in China and 3.8 million in Europe. These numbers underscore the urgent need for US automakers to address the factors contributing to their declining sales, especially as the global demand for EVs remains robust.
The downturn in North America follows the end of the $7,500 EV tax credit in September 2023, which has led to “subdued” sales, according to industry experts.
“Overall, EV demand remains resilient, supported by expanding model ranges and sustained policy incentives worldwide,”
stated Charles Lester, data manager for Rho Motion, which is part of Benchmark.
Automakers are feeling the pressure. In September, Ford CEO Jim Farley warned that the EV market share in the US could nearly halve to around 5% in the near term, reflecting deepening concerns within the industry. This comes amid a backdrop of tariff implications and the Trump administration’s relaxed regulations on EV production.
Despite facing a rocky year, Tesla has shown resilience, managing to weather sales drops better than its competitors. However, the world’s most valuable car company is racing against the clock to avoid a second consecutive year of declining sales, as the competition intensifies.
Other US EV manufacturers, including General Motors (GM) and Rivian, have announced layoffs in response to declining demand, further highlighting the impact of these sales trends. Meanwhile, in China, the EV market continues to thrive, with overall sales up 19% despite challenges faced by domestic giants like BYD, which recently reported record EV exports.
As the global landscape shifts, the focus remains on how US automakers will adapt to these challenges. With consumer interest and global sales rising, the pressure is on North American manufacturers to innovate and respond to changing market dynamics.
Stay tuned for further updates as this story develops. The future of EV sales in North America hangs in the balance, and the coming months will be crucial for companies looking to regain their footing in an increasingly competitive market.
