US falls behind in electric

China and Europe are leaving the US in their wake when it comes to the uptake of battery electric vehicles (BEVs).

That’s the finding of vehicle data analyst Jato Dynamics. And its report – called In the Slow Lane: EV Demand in the US – blames relatively low petrol prices and large vehicles in the world’s second-largest market for light vehicles.

It finds that while worldwide BEV registrations jumped from 1.6 to 11.2 per cent of volume from 2019-23, most of that increase was thanks to sales in China accounting for more than half of that figure. Europe was second with 22 per cent of global demand with US accounting for 12 per cent.

Low-cost fossil fuel and a preference for large models are seen as the major contributors for Americans opting for internal-combustion powertrains.

According to Jato’s data, SUVs accounted for 56 per cent of light-vehicle sales in the States last year, while pick-up trucks accounted for 18 per cent. Large and luxury SUVs accounted for one-fourth of these sales with 3.13 million units. 

By comparison, 10.3m SUVs were sold in 2023 in China, a much bigger market, of which just 1.33m were large and luxury models. In Europe, this figure dropped to just 352,000 units for five per cent of the segment’s total.

Taking into account comparatively higher BEV retail prices and the comparatively low cost of running an ICE vehicle in the US, there is currently no strong financial incentive to encourage consumers to make the switch to electric, reports Jato.

A lack of charging infrastructure is also seen as a big barrier for buyers to make the switch away from ICEs, which boast a comprehensive network of service stations.

While the number of publicly accessible charging points increased by about 55 per cent globally between 2021 and 2022, deployment has again been led by China and Europe. 

In 2022, China accounted for almost 90 per cent of global growth of fast chargers, bringing the total in the country to 760,000. Europe saw a 55 per cent increase compared with the previous year to bring the total to more than 70,000.

By comparison, 6,300 fast chargers were installed the US in 2022, bringing the total stock to just 28,000. 

Michael Kasuba, global head of analytics at Jato Dynamics, says: “Currently, many EV models available in the US are priced from $40,000 upwards. With overall vehicle prices trending higher in recent years, the lack of affordable options may also be impacting younger buyers who might be more inclined to purchase an EV.”