The U.S. electric vehicle market has experienced turbulence in recent months; however, a broader perspective reveals a clear trend: traditional gas-powered vehicles are gradually fading away. Last year, conventional internal combustion vehicles accounted for just 84 percent of total passenger vehicle sales in the U.S., marking their smallest market share ever. Meanwhile, sales of fully electric vehicles and hybrids have been steadily rising.
Although gas-powered cars still maintain a strong presence in the U.S. market, the shift toward electric and hybrid vehicles is undeniable. According to the U.S. Energy Information Administration, this change is partly driven by the growing popularity of hybrid vehicles, which accounted for nearly 10 percent of new car sales last year, alongside plug-in hybrids. While hybrids consume less gas than traditional cars, they do not provide a complete solution for eliminating carbon emissions from vehicles. In contrast, battery-electric vehicles offer a pathway to achieve this goal, and sales of fully electric vehicles are also growing rapidly.
Electric and hybrid vehicles constituted 16 percent of new car sales in the U.S. last year, signifying significant progress in reducing greenhouse gas emissions from the transportation sector, accounting for over a quarter of the nation’s total emissions. While alternative approaches like enhancing public transportation or promoting car-free lifestyles could be more effective solutions, increasing the adoption of electric vehicles is essential for the U.S. to meet its emissions targets.
Despite recent challenges, including a slowdown in electric vehicle sales among major automakers like Ford, GM, and Stellantis, experts anticipate a deceleration in market growth this year following an exceptional 2023. However, a February report from Clean Investment Monitor, a collaboration between the Rhodium Group and the Massachusetts Institute of Technology’s Center for Energy and Environmental Policy Research, suggests that electric vehicle sales align with the U.S.’s climate goals despite the industry’s current obstacles.
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