As renewable energy chips away at the market share enjoyed by fossil fuels in the broader energy markets, a similar trend is occurring in the auto industry.
According to recent statistics, electric vehicle sales are growing rapidly, even as automobile sales overall are slowing down.
An April 2022 report released by auto industry specialist Kelly Blue Book shows new vehicle sales in the first quarter of 2022 reached 3.3 million. That represents a decline of almost 16% from the 3.9 million sold in the same quarter in 2021.
While total vehicle sales were decelerating, EV sales have taken off. According to the report, total sales for electric vehicles in Q1 2022 reached 173,561. That was a 76% increase from the same quarter a year ago, and a new record for the EV industry.
EVs still have a long way to go. Their sales represented only slightly more than 5% of the total vehicle market. But that number is increasing, from only 2% one year before.
The report reveals some other growth trends in the EV market. For example, the range of EV options is also on the rise. There were 32 EV models with at least one sale in Q1. That’s almost double the 18 models sold in the same quarter last year.
As small as it is, the EV market would be even smaller if it were not for one manufacturer, Tesla. In the first quarter of 2022, Tesla’s share of the EV segment rose to 75%, up from 70% in Q1 2021. The two best-selling EVs in the United States are the Model 3 and the Model Y. Combined, they make up nearly 70% of all EVs sales, with about 118,000 sales. The next-closest model in the EV market was the Ford Mustang MachE, which sold less than 10,000.
Competition in the EV market is about to change. Ford’s F-series pickup truck continues to be the best-selling car on the market. The company has announced the launch of an all-electric version of the pickup, the F-150 Lighting, in the second quarter of this year, which is certain to be a popular choice.