URGENT UPDATE: New data reveals that while global electric vehicle (EV) sales surged by 21% this year, North America is facing a troubling decline, with sales dropping by 1%. This alarming trend, reported by supply chain firm Benchmark Mineral Intelligence, reflects a significant shift in the EV market landscape.
Between January and November, 1.7 million EVs were sold in North America, starkly trailing behind 11.6 million sold in China and 3.8 million in Europe. The decline in US sales is attributed to a combination of recent policy changes, tariffs, and the termination of the $7,500 EV tax credit in September, which has left many consumers hesitant to purchase battery-powered vehicles.
The CEO of Ford, Jim Farley, has expressed deep concern, predicting that the EV market share in the US could shrink to around 5% in the near term. This forecast underscores the urgency of the situation as US automakers grapple with dwindling demand. In the past few months, both GM and Rivian have announced layoffs, signaling the impact of slowing sales on the workforce.
Despite these challenges, Tesla, the world’s most valuable EV manufacturer, has managed to navigate the turbulent market better than its competitors. According to Cox Automotive, Tesla experienced a less severe drop in sales compared to other manufacturers, but the company faces mounting pressure to avoid a second consecutive year of declining sales.
In contrast, China’s EV sales grew by 19%, with local manufacturer BYD setting records for EV exports in October, even amid increasing competition from startups. Global demand for EVs remains strong, bolstered by expanding model ranges and ongoing policy incentives worldwide.
Charles Lester, data manager for Rho Motion, highlighted that “overall, EV demand remains resilient.” However, the situation in North America serves as a stark reminder of the challenges the industry faces.
As the market continues to evolve, all eyes will be on how US automakers adapt and respond to these shifts. What happens next could significantly impact the landscape of electric vehicle sales in North America.
Stay tuned for further updates on this developing story.
