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During the third quarter of 2022, more than 232,000 electric vehicles were sold in the United States, representing 7.1% of overall light-duty vehicle sales. EVs include battery, plug-in hybrid, and fuel-cell electric vehicles. This is a 2.14 percentage point (pp) increase compared to Q3 of 2021, and a 0.42 pp increase from the Q2 of 2022, according to data released today by the Alliance for Automotive Innovation, an industry trade group in Washington, DC.*
The cost of the average EV in the third quarter of 2022 was about $66,100 while the average cost of all new light-duty vehicles in that time period was about $48,000. Year-over-year, EV prices rose more than $12,500 from the Q3 of 2021, while the average cost of all new light vehicles rose just over $3,700.
AutoInformed thinks two factors are in play here: First demand for EVs is strong, particularly among affluent buyers. Second, EVs are more costly to develop, batteries are still expensive and the covid pandemic supply chain interruptions are making them scarce. One click bait headline had it that “EVs are Bringing Out the Worst in Us” because, among other things, a Hummer EV battery pack weighs as much as a Honda Civic. It consumes minerals that could otherwise be used to build several electric-sedan batteries or hundreds upon hundreds of e-bike batteries.
Perhaps such thinkers are unaware of the ongoing mood amongst that tawdry cast of Capital characters along the banks of the Potomac who will not legislate SUVs and Pickup trucks out of existence. Yes, Virginia there is a Santos clause and his party wants to legislate the government out of business.
More than 652,000 EVs were sold in the first three quarters of 2022, totaling 6.53% of all light vehicle sales and an increased market share of 3.0 pp compared to the first three quarters of 2021. The total volume of all light-duty sales for the first three quarters of the year is down 17% from the same period a year ago, while the volume for EVs increased 40% (an increase of 184,884 vehicles), admittedly from a small base, but healthy growth all things considered.
Significantly, this trend is a subject of much concern among environmentalists. Passenger cars once dominated the EV market, but makers continue to introduce new models in higher volume segments. Duh. Utility vehicle (UV) offerings are growing rapidly. Moreover, electric pickup trucks are a relatively new entry to the market (their commercial debut was September 2021), with many more models and deliveries now expected in the short-term.
The upshot: non-car segments are continuing to make gains, and in the third quarter of 2022, light truck (UVs, minivans, and pickups) sales comprised more than 68% of the EV market. Quarterly sales of BEV and PHEV UVs have grown from about 19% of EVs at the start of 2020 to 61% in the third quarter of 2022 (averaging 55% of EV sales for all of 2021). The faux argument is, based partly on wishful thinking in our view, that moving EV production in to larger vehicle segments is self-defeating because they are inherently less efficient. AutoInformed disagrees. EVs are and will come. Let’s concentrate on improving EVs. Let’s not get the imperfectly wished for great get in the way of the good – ultimately for all. You cannot dissolve the people and elect new ones. You can improve their choices.
* Figures compiled by Alliance for Automotive Innovation with new registrations for retail and fleet data provided by S&P Global Mobility.
Automakers Rapidly Increasing EV Prices
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During the third quarter of 2022, more than 232,000 electric vehicles were sold in the United States, representing 7.1% of overall light-duty vehicle sales. EVs include battery, plug-in hybrid, and fuel-cell electric vehicles. This is a 2.14 percentage point (pp) increase compared to Q3 of 2021, and a 0.42 pp increase from the Q2 of 2022, according to data released today by the Alliance for Automotive Innovation, an industry trade group in Washington, DC.*
The cost of the average EV in the third quarter of 2022 was about $66,100 while the average cost of all new light-duty vehicles in that time period was about $48,000. Year-over-year, EV prices rose more than $12,500 from the Q3 of 2021, while the average cost of all new light vehicles rose just over $3,700.
AutoInformed thinks two factors are in play here: First demand for EVs is strong, particularly among affluent buyers. Second, EVs are more costly to develop, batteries are still expensive and the covid pandemic supply chain interruptions are making them scarce. One click bait headline had it that “EVs are Bringing Out the Worst in Us” because, among other things, a Hummer EV battery pack weighs as much as a Honda Civic. It consumes minerals that could otherwise be used to build several electric-sedan batteries or hundreds upon hundreds of e-bike batteries.
Perhaps such thinkers are unaware of the ongoing mood amongst that tawdry cast of Capital characters along the banks of the Potomac who will not legislate SUVs and Pickup trucks out of existence. Yes, Virginia there is a Santos clause and his party wants to legislate the government out of business.
More than 652,000 EVs were sold in the first three quarters of 2022, totaling 6.53% of all light vehicle sales and an increased market share of 3.0 pp compared to the first three quarters of 2021. The total volume of all light-duty sales for the first three quarters of the year is down 17% from the same period a year ago, while the volume for EVs increased 40% (an increase of 184,884 vehicles), admittedly from a small base, but healthy growth all things considered.
Significantly, this trend is a subject of much concern among environmentalists. Passenger cars once dominated the EV market, but makers continue to introduce new models in higher volume segments. Duh. Utility vehicle (UV) offerings are growing rapidly. Moreover, electric pickup trucks are a relatively new entry to the market (their commercial debut was September 2021), with many more models and deliveries now expected in the short-term.
The upshot: non-car segments are continuing to make gains, and in the third quarter of 2022, light truck (UVs, minivans, and pickups) sales comprised more than 68% of the EV market. Quarterly sales of BEV and PHEV UVs have grown from about 19% of EVs at the start of 2020 to 61% in the third quarter of 2022 (averaging 55% of EV sales for all of 2021). The faux argument is, based partly on wishful thinking in our view, that moving EV production in to larger vehicle segments is self-defeating because they are inherently less efficient. AutoInformed disagrees. EVs are and will come. Let’s concentrate on improving EVs. Let’s not get the imperfectly wished for great get in the way of the good – ultimately for all. You cannot dissolve the people and elect new ones. You can improve their choices.
* Figures compiled by Alliance for Automotive Innovation with new registrations for retail and fleet data provided by S&P Global Mobility.