EV sales increased by more than 11% in the second quarter. (iStock )
The electric vehicle (EV) market is booming around the world, despite tough times for EV giant Tesla, with research firm reporting that U.S. electric vehicle sales rose 11.3% in the second quarter of 2024. Report from Kelley Blue BookQuarterly sales reached a record high of 330,463 units.
Sales grew due to increased vehicle sales, continued discounts on EVs, and increased leasing. General Motors led the way with new product introductions, which helped boost sales numbers. However, Tesla saw its sales decline by 6.3% year over year. In fact, Tesla’s electric vehicle market share fell to 49.7%, the first time it has fallen below 50% in the U.S.
Despite Tesla’s disappointing sales numbers, overall electric vehicle sales in the second quarter accounted for about 8% of total new vehicle sales, up from 7.1% sales in the first quarter of 2024.
“This increased competition is leading to continued pricing pressures, gradually encouraging EV adoption. OEMs that offer the right product at the right price and a great consumer experience will lead the way in EV adoption,” said Stephanie Valdes Streety, director of auto industry insights at Cox. explanation.
Some of the most notable new entrants in the EV market in the second quarter included the BMW i5, Cadillac Lyriq, Honda Prologue and Kia EV9 SUV. General Motors also added more than 21,000 new EVs, including electric options for the Chevrolet Blazer, Equinox and Silverado.
“We remain bullish on electric vehicle sales in the long term. The auto industry landscape is vast, so growth will be very slow at times, but the long-term trajectory indicates that EV sales will continue to increase over time. As EV infrastructure and technology improve and more models are released, we believe many undecided shoppers will ultimately choose EVs,” Valdes Streety said.
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Senate seeks ways to increase EV production
The U.S. Senate, namely the Budget Committee, Recently met Democratic and Republican leaders came together to discuss ways to boost electric vehicle production in the U.S., aiming to take advantage of a growing market to compete globally.
Sen. Sheldon Whitehouse (D-RI) led the call, which was also supported by Sen. Lindsey Graham (R-SC). As a senator from South Carolina, Graham noted that building EVs in the state makes sense because the state is a major auto assembly and tire exporter.
Many Republicans have voiced opposition to increasing EV production, and many oppose President Biden’s goal of 50% of all auto sales being electric by 2030. But Senator Graham suggested that becoming a major EV manufacturer could bolster America’s infrastructure.
Still, several senators expressed concern that the current power grid cannot keep up with the growing demand for charging electric vehicles. International competition was also a topic of discussion at the hearing.
China is the world’s largest manufacturer of electric vehicles, and its electric-vehicle market is heavily supported by government funding, subsidies and tax breaks. Sen. Debbie Stabenow, a Democrat from Michigan, another auto-rich state, expressed concern the U.S. will not be able to catch up.
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Car leasing is becoming more popular, with consumers with good credit choosing the lease option more than 30% of the time.
Auto market is down for companies, up for buyers
Overall, the auto industry is leveling out for consumers, but not for businesses. Prices for used and new cars are trending down, and many Experts predict further declines.
The supply of new and used cars isn’t as tight as it was during the pandemic, when supplies were scarce, so buyers are less likely to pay significantly more than list price. That means buyers have some power back. Meanwhile, dealers have to offer discounts and specials to get buyers to take action.
But until interest rates fall, auto loan interest rates will likely remain high and auto insurance costs will remain high, making car ownership still out of reach for many drivers.
Additionally, competition from the EV market is hurting dealers and automakers that are struggling to embrace the trend. Ford CEO Jim Farley said: He explained the company’s EV experience. As “Be humble.”
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