Why 2022 Was A Make Or Break Year For Electric Vehicles
Electric vehicles reached many new milestones in 2022, with demand sharply increasing, making it a pivotal year for the market; however, the industry had a hard time even attempting to meet that demand.
Electric vehicles have vastly increased in popularity in 2022. They have been coined as the saviors of the automotive industry and a massive part of the globe becoming carbon neutral. Compared to a couple of years ago, there is an enormous increase in the number of electric vehicles on the road now, and it’s not just Teslas.
Tesla is still the most popular brand of electric vehicles, well, for those who can afford them. The range of different makes and models of electric vehicles on the market is growing weekly, which shows their ever-increasing popularity.
In America last year, 5.6% of all vehicles sold were electric vehicles. While that may sound disappointing to some people, it is an impressive increase. In 2019, only three years ago, electric vehicles accounted for only 1.4% of the American automotive market.
With the pandemic, inflation, and everything else in between, that’s a significant increase in the market. This increase in adoption has been seen globally, which is why every major automotive manufacturer has brought out an electric vehicle of their own.
While the demand for the new technology is there, the supply isn’t. One of the major problems the automotive industry has had to deal with post-pandemic is its parts supply issue. It has slowed down the production of every vehicle in the last two years. While that has caused considerable problems, another unforeseen issue is that some electric vehicles became popular beyond was their manufacturers expected.
Ford F-150 Lightning and Mustang Mach-E have been widely successful, beyond even what Ford predicted. This response has brought supply and demand issues as they cannot make these cars quick enough to meet customers’ needs.
Ford has produced over 150,000 Mach-E’s, none of which were to fill car dealership lots but to meet customers’ orders. This demand has stopped Ford from expanding its electric vehicle market as they just cannot meet the demand in America alone. Ford is already growing their Ford F-150 lightning manufacturing plant in Michigan to keep up with its popularity.
The variety in the electric vehicle market has also gone up this year, with twenty-six new varieties released, such as the Kia EV6, Hyundai Ioniq 5, Rivian R1T, and R1S SUV, to name but a few. Luxury brands such as Mercedes Benz and Audi have also started to invest and produce electric models to add to the ever-growing market.
The technology is also improving, with the batteries charging quicker and lasting longer distances.
One of the great motivations people have had this year to change to electric vehicles is the Inflation Reduction Act. This act included a heavily incentivized tax credit for anyone who would like to buy a new electric vehicle as long as they meet the criteria. The criteria have been relaxed for 2023, so the market should see another boost.
Electric vehicles have definitely seen a boost in popularity this year, and this area of the automotive market is set to increase and increase. It is the perfect way to reduce any impact vehicles have on the planet while still having the convenience of a vehicle. It’s a win-win for everyone.
