The sales of electric vehicles (EVs) are significantly below the levels required to meet the EPA emissions standards proposed by President Biden, posing a challenge to his green-energy agenda.
In the second quarter of this year, EVs accounted for 9.1% of all new light-duty vehicle sales, which is a slight increase from the previous quarter but still far from the targets set by the administration. The administration aims for up to 60% of vehicles sold by 2030 and 67% by 2032 to be EVs.
However, at the current growth rate, it would take the industry over two decades to reach the 60% threshold. The average EV market share growth in the US has been just over two percentage points per year since 2020.
The Alliance for Automotive Innovation (AAI), which represents major automakers, including General Motors, Volkswagen, and Ford, has expressed doubts about the feasibility of the administration’s expectations.
In terms of regional sales, California leads with 25.9% of new EV sales, followed by the District of Columbia, Washington, New Jersey, and Oregon.
One of the challenges hindering EV sales is the lack of sufficient public charging infrastructure. The number of new charging stations is not keeping up with the growth in EV sales, with a ratio of one new charging port for every 49 new EVs. The California Energy Commission estimates that a ratio of one public charging port per seven EVs is needed to transition from internal combustion engines.
Despite these challenges, EVs have become more affordable compared to gas-powered vehicles due to factors such as reduced supply chain issues and inflation. Increased tax credits for EV buyers and domestic battery manufacturers have also contributed to their affordability.
In the second quarter, the average cost of an EV was $54,300, while the average cost of a gas-powered light-duty vehicle was $48,500.
While President Biden’s goal of transitioning to electric vehicles is ambitious, the current sales figures indicate that there are significant challenges to overcome. These include the need for widespread charging infrastructure and overcoming consumer concerns about range anxiety. Achieving the targets set by the administration will require a concerted effort from automakers, policymakers, and other stakeholders in the EV ecosystem.
