This post was originally published on this site
Sales of nearly every type of new car are accelerating, but nothing is speeding up faster than electrified vehicles — the combined total of electric vehicles (EVs), hybrids, and plug-in hybrids.
In the second quarter, total new vehicle sales increased 49.5%. Electrified vehicle sales jumped 201.1% in that same time frame.
EVs growing faster than hybrids
Sales of pure electric cars grew faster than those of hybrids and plug-in hybrids. Americas bought 258,028 hybrids and plug-in hybrids in the second quarter of 2021, compared with 91,667 in the first quarter of 2020 – a 181% increase. They bought 118,233 EVs, compared with 33,312 last year – an increase of 254.9%.
See: EVs will dominate by 2033, study finds
Manufacturers have introduced dozens of new EVs in 2021. They range from ultra-high-end models like the Mercedes-Benz EQS to practical smaller cars like the Hyundai Ioniq 5
HYMTF,
Electric cars remain more expensive than their gasoline counterparts, but federal tax incentives can cut the price by up to $7,500, helping ease the sting for many buyers.
As the pie grows, Tesla’s share shrinks
Tesla
TSLA,
continues to dominate the category. Four out of the five bestselling EVs in 2020 were Tesla products. But the company faces aggressive new competition on every front. Volkswagen’s
VWAGY,
ID.4 EV was recently recognized as World Car of the Year. Ford’s
F,
Mustang Mach-E took home the North American Utility Vehicle of the Year Award for 2021.
See: Review: The ID.4, Volkswagen’s all-new electric compact SUV with a 250-mile range
EVs are also expanding into categories where Tesla does not yet compete. Ford accepted more than 100,000 reservations for its upcoming F-150 Lightning electric truck, which may reach the market ahead of Tesla’s Cybertruck.
See: 15 electric cars (and trucks) to watch for in 2022
Even if Tesla’s sales continue to increase, its share of the pie will likely shrink because of new competition. In Q2, Tesla’s share of the EV segment in the U.S. stood at 64%, down from 71% in Q1 and 83% a year earlier.
This story originally ran on KBB.com.
