Kelley Blue Book reports an increase in EV sales

Sales of EVs topped previous records for both units and market share in the second quarter of 2022.

As of the second quarter, sales of electric vehicles (EVs) exceeded 100,000 units, making up 5.6% of all new car sales in the United States, according to a study of Kelley Blue Book’s new car sales statistics.

With consumers continuing their transition toward electric vehicles and more models becoming available, both of those metrics represent new high water marks for EVs. The entire electrified vehicle category rose 201.1 percent with a total of 375,000 cars, according to a Cox Automotive analysis on the data. In addition, Americans purchased more than 250,000 hybrid-electric vehicles.

Some of these customers have likely been pushed toward electrification by the 40 percent spike in gas costs this year, but there’s more to this trend than a hasty reaction to gas prices. Michelle Krebs, a Cox executive analyst, remarked Even prior to the rise in petrol costs, she explained, “our expectation was for electric car sales to increase, in part due to the introduction of many more models.”

As gas prices increased, Krebs said, “we did notice increased interest in shopping for EVs, hybrids, and smaller, fuel-efficient automobiles.” If there had been inventory, EV sales may have been greater. Limited production and inventories are generally a hindrance to vehicle sales. Supply is not keeping up with demand.

According to Cox, the rising variety of EVs from various manufacturers entering the market is having the predicted impact on EV market leader Tesla, whose market share is declining. According to the research, the company’s market share for EVs has decreased from 83 percent to 64 percent during the past year.

According to a Cox Automotive “quick survey,” 30% of customers said they would be “very or very likely” to consider an electric vehicle for their next purchase, indicating that the market share for EVs is expected to increase. The continuing Kelley Blue Book Brand Watch survey reveals that response rates have historically ranged from 5% to 7%.

Thus, according to Krebs, the most recent sales growth figures for EVs may not be as important as they appear. “I wouldn’t say we’re at a tipping point or an inflection point since EV share is still just 5.6 percent, a record but still a little portion of the market,” the author says.

Manufacturers are having trouble producing EVs due to a lack of batteries, but if consumers accepted mid-sized battery packs more readily than the massive 300-mile packs they presently appear to want, there would be fewer cells in each vehicle and maybe more of them.

Krebs said, “We haven’t polled customers on bigger batteries. Range and charging infrastructure are known to be issues for prospective EV purchasers, but they are now less of an issue than they were a few years ago thanks to better range and the emergence of charging stations.

Because they would be less expensive, vehicles with that mid-size 220-mile battery packs would also be desirable. According to Krebs, “the biggest barrier to EV sales is cost, and a bigger battery merely drives up the cost.” “In Q2, the typical EV priced $66,000.”