A quick glance at US electric vehicle sales might give the impression EVs are a niche product, unable to shake Americans’ love affair with gas-powered trucks and SUVs.
The recent spike in gas prices did little to lift sales, and the elimination of some tax incentives last year cut into demand. Major auto brands have pulled back on American EV plans. US sales of new EVs fell 20% in the second quarter from a year ago, according to Cox Automotive.
But look under the hood, and the picture is nowhere near as grim.
A rush to buy EVs last year inflated sales, distorting the subsequent drop. A booming international market means automakers can’t afford to give up on EVs entirely. And US EV sales are improving from earlier this year.
“While (US) demand has softened following the expiration of federal incentives, automakers cannot simply walk away from electrification,” said Stephanie Valdez Streaty, director of industry insights for Cox Automotive.
