SOUTHFIELD, Mich.– The United States has reached a new record for electric vehicles (EVs), with 208,000 new registrations last year, according to an IHS Markit analysis. That number rose more than twofold year-over-year, while EV market share also has jumped considerably since 2015.
“While relatively successful models such as the Tesla Model 3 mature in the market, other traditional automakers will be rolling out not just one EV as we have seen in the past, but multiple models off dedicated EV platforms,” said Devin Lindsay, IHS Markit powertrain analyst, in Oil Price Information Service.
IHS Markit predicted that by the end of this decade, more than 350,000 EVs will be sold in the United States, comprising a 2% share of the entire vehicle market. Within five years of that date, EVs are forecast to capture 7% of the market share, with more than 1.1 million vehicles sold in the country.
However, IHS Markit doesn’t think vehicles with internal combustion engines will fade, as Americans continue to purchase cars and trucks powered by diesel and gasoline. But EV loyalty rates are also on an upward trajectory, with new EV owners more likely to buy another EV.
“EV loyalty rates have been steadily increasing since their introduction by OEMs. This increase over such a short timeframe demonstrates that a portion of the U.S. market is highly accepting of this new technology and has a growing comfort level with it,” said Tom Libby, loyalty principal at IHS Markit in Oil Price Information Service. “As more new models enter the market, we anticipate an even further increase in loyalty to these vehicles.”