Once you go electric you don’t go back—with cars that is.
- Electric vehicles (EVs) have been dominating the market and car buyers have been sticking with the trend.
- More than 5% of vehicle sales over the past year were electric, up from less than 3% the year before.
- Majority of people who have bought an EV don’t go back to gas, according to U.S. vehicle registration data.
- Data reveals that most car buyers who switched to EVs purchased another one for their next car as well.
Why it’s important
Demand for EVs has been steadily rising. More than half of car buyers worldwide want an EV, marking a tipping point for the number of people wanting electric vehicles.
The latest EY Mobility Consumer Index shows that 52% of people looking to buy a car want to buy an EV. This is the first time the number has exceeded 50%, representing a rise of 11 percentage points since last year.
EVs are dominating the market. People are rapidly switching over to EVs from gas for many reasons including the incentives brought on by the Inflation Reduction Act—like the $7,500 tax credit.
Not only are people quickly switching to EVs, but they aren’t going back to gas powered cars.
The percentage of households who owned an EV and bought another one increased from about 48% to 65.3% between the second quarter of 2021 and 2022, according to U.S. vehicle registration data.
Demand for electric vehicles has been rapidly rising, but now with more incentives on the table numbers will continue to grow.
As stated, the Inflation Reduction Act came with incentives for customers to purchase EVs like the $7,500 tax credit. The incentives have made the predicted number of EVs go up. Before the act was passed predictions for EV sales by 2030 came in at 43% of the U.S. market, now it sits at 52%.