The US EV market is set to grow in 2025
Words NZ Autocar | Images Carscoops, Motor1
A US firm entrenched in the car industry reckons that 2025 will be the strongest year for the EV sector since 2019. It believes one in four new car sales will be electric.
Cox Automotive has run the numbers and believes EVs will gain in popularity this year. It says 2025 will be the strongest year for US sales of EVs since the Covid pandemic.
The survey sample included 2557 American car buyers and 526 dealers. It aimed to understand the attitudes, preferences, and views of dealers and consumers regarding electric cars.
The Cox survey collected a wide range of demographic information, such as age, income, location, and current car ownership. This ensured the survey was representative of a broad cross-section of buyers.
In 2024, virtually all automakers reported better EV sales than in 2024, with exceptions being Stellantis and Tesla. General Motors was the best-selling carmaker in 2024, while Honda and Mazda also saw decent growth.
Sales of EVs in the US topped one million units for the first time last year. Also, those looking to buy a used EV rose from 62 per cent in 2021 to 77per cent in 2024.
For 2025, Cox Automotive suggests that EVs will account for around 10 per cent of the market, up from about 7.5 per cent in 2024. Sales of ICE vehicles will fall to 75 per cent overall, the lowest level ever. Together, EVs and plug-in hybrids should comprise around 15 per cent of new vehicle sales.
This year, at least 15 new EV models will launch in the US. The rise in expected sales this year is, however, more likely a reaction to the rapid expansion of the EV charging network.
A lack of chargers has always been a major hurdle to EV adoption. The vast majority of dealers are investing in EV charging infrastructure, helping to ease the charging issue.
Affordability remains a major barrier for EVs but this year things should improve. Cox Automotive suggests credit availability should keep improving. And the economy is set to stabilise while loan rates should continue falling. All of these factors are set to make EVs more popular, despite the government removing incentives to buying zero emissions vehicles.
