The CEO of EO Charging shares his predictions for the development of the electric vehicle market in 2023
While the US continues to lag behind Europe and Asia, the total market share of electric vehicles (EVs) surpassed 6.7% in the first half of 2022 – a 4.9% increase since 2019 – meaning there are now more than 1.7 million electric vehicles are on the road in the US. This impressive growth is due to increased investment and commitment from the Biden administration, including its ambition to make 50% of all new cars electric by 2030.
In fact, over the past two years, White House incentives have changed the game for EV and charging infrastructure rollouts. This included the approval of state-level credit programs, increasing electrification commitments from major US OEMs, and stricter emissions standards.
It is encouraging that US consumers and commercial fleets are increasingly embracing electrification. With total cost of ownership (TCO) proven to favor EVs, vehicle owners of all shapes and sizes are making the choice to save money and reduce emissions. However, to continue the transition at a fast pace, it is important that car buyers, fleets and governments do not lose momentum. So what will be important in the next 12 months?
Despite rising inflationary pressures, we expect supportive policies at national, state and regional levels in 2023, not only in the US but also in Canada and Mexico, which are taking meaningful policy steps in parallel with the US. In terms of vehicle availability, the lighter the load, the greater the vehicle availability in 2023. We will see a number of new models coming to market, allowing fleet operators to move to last mile and return-to-home EVs in greater numbers. Fleets are now also ordering vans and trucks in record commitments.
The e-bus sector is another area where we expect impressive growth next year, especially electric city and school buses. In the UK, high upfront investment costs appear to be an obstacle to large-scale e-bus transition; however, the US has benefited from significant government funding programs and its adoption is well underway.
There are now more than 1.7 million electric vehicles on the road in the US
For charging infrastructure, we believe that the private sector will increasingly pay attention to signals from the public sector, such as purchasing incentives, and that the pace of transition will increase. The significant price advantage compared to diesel and petrol determines these decisions.
However, despite the growth, there are still barriers. Due to the global supply chain issues that occurred in 2022 due to the pandemic and the war in Ukraine, fleet operators are still dealing with a backorder of vehicles, which will continue into 2023. Second, the infancy of the EV market in the US means there is still a lack of understanding and experience in scaled EV infrastructure. The industry needs to work together to give drivers the confidence to charge their vehicles, and teach fleet managers how to build and manage a reliable infrastructure that enables them to move to electric while benefiting their bottom line.
Overall, the US is certainly poised to continue electrification at a brisk pace in 2023.
The views expressed here are those of the author and do not necessarily reflect the views of Automotive World Ltd.
Charlie Jardine is general manager of EO Charging
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