Get Ready for the 2024 Electric Vehicle Push

Demand for electric vehicles (EVs) is increasing, and dealers and manufacturers know that selling more EVs will require additional effort, according to Cox Automotive’s Forecast: 2024 released Jan. 3.

The report, based on in-house data and expert insights, provides a collective vision and perspective on the road ahead for the U.S. auto industry, with electric vehicles as one of the themes.

The expectations for EV growth in the U.S. market have shifted from “rosy to reality” as sales increase, but customer acceptance of EVs isn’t keeping pace. Nevertheless, Cox Automotive expects 2024 to be the Year of More for EVs.

The Cox Automotive team expects that the automobile industry will fully acknowledge the need to convince average consumers of the benefits of electric vehicles. They also believe that many consumers may not easily be convinced.

However, with more electric vehicle models available, along with greater efforts to attract buyers, Cox Automotive still expects that EV sales in the U.S. will exceed the 1-million-unit record set in 2023. Furthermore, electric vehicles, plug-in hybrids, and hybrids combined are likely to account for almost 24% of the market, with electric vehicles alone accounting for more than 10% of total sales.

Although fewer electric vehicles (EVs) may now qualify for the Inflation Reduction Act tax credits due to new guidelines, the federal incentives will still encourage consumers to purchase EVs. Furthermore, leasing of electric vehicles is expected to increase from about 20% to 25%.

Meanwhile, the used EV market is expected to be the fastest-growing segment of the wholesale/used-vehicle market.

Originally posted on Charged Fleet