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Widespread electrification is causing significant growth in the EV market. Industry experts anticipate that recent developments – such as eco-friendly initiatives, government activities, and an expanding variety of makes and models – will boost EV sales in the coming years.
However, dealerships must first understand how these 2022 EV market trends are reshaping the industry and adapt sales strategies accordingly to capitalize on these emerging opportunities.
2022 EV Market Trends
The following are trends happening in the EV market that all dealers should consider:
More Consumers Are Going Green
Recent studies suggest that 2022 will be significant for the future of our ecosystem as the effects of climate change and pollution become increasingly visible. Each year, more of the global population begins to appreciate the need to cut carbon emissions. Many understand that switching from ICE to EV is a giant first step in lessening the impact of global warming and pollution.
More Homes Will Be EV-Friendly
Overnight home charging is the most convenient and cost-effective way to charge an electric vehicle. As a result, many residential home builders will likely begin adding charging points during construction.
This added home feature may be critical to EV owners who:
- Do not live near a public charging station
- Have a long daily commute with limited stations along their route
- Do not have access to a station at their workplace
Overnight charging is also grid-friendly because capacity is much higher during off-peak hours.
More Manufacturers are Making Them
The greater variety of EVs on the market today has contributed significantly to their growing appeal, and many of the country’s most well-known automakers are now producing electric cars.
The EV Surge in Europe Will Impact Growth in the US
Automakers have prioritized their limited EV production allocations to Europe, and the rise of the European EV market has, to a degree, delayed short-term EV sales in the US.
The reasons for this sales discrepancy include:
- Auto manufacturers look to avoid EU-driven CO2 emissions penalties by offering more EVs.
- European countries offer more attractive tax credits to EV owners, encouraging more purchases.
- Commuters in Europe have access to more charging stations.
- The UK plans to ban gas-powered vehicles in 2030, instilling urgency in its citizens to purchase EVs soon.
However, this development should spur faster growth in the US in the long run, as automakers will speed their global migration to electric vehicles as sales in Europe increase. Industry analysts expect EV sales in the US to reach 50% by 2030, coinciding with the UK ban.
Crossovers Continue to be Popular
While Crossover popularity is not directly related to EV sales, it does impact the entire automotive industry. US consumers preferred SUVs or sedans in years past, but the market is currently experiencing a shift to the middle of the two.
Crossovers now account for nearly half of new light-duty vehicle sales, making them the largest category. This shift is relevant to the EV market because this category is also where most EVs will sit.
Electric Pickups Will Be Here Soon
More makes and types of electric cars and trucks will join the market as their popularity grows. Although there have been few electric vehicle types to pick from historically, dozens are available. Several manufacturers plan to produce new EV truck models in the coming years, and greater variety should increase sales and drive more revenue.
More of Your Competitors Are Selling Them
As EVs have grown in popularity, more car dealerships have started selling them, contributing to the current spike in sales. These sales boosts are due in large part to dealerships now acknowledging the following:
- Electric cars are no longer a niche
- More OEMs entering the market means falling prices and increased consumer interest
- The growing availability of charging stations eases charging accessibility fears
Dealerships that have yet to ramp up their EV sales plan will quickly fall behind their competition if they do not adapt to this inevitable trend.
Make Sure Your Dealership is Prepared
The global EV market share has climbed significantly in recent years, and analysts anticipate this trend to extend for years to come. However, despite this surge, current projections from the industry imply that the EV journey has just begun.
All | September 19, 2023