Inflation Reduction Act of 2022 brings a revised clean vehicle credit program that will provide a tailwind to PEV sales this year
BOULDER, Colo., Jan. 17, 2023 /PRNewswire/ — A new report from Guidehouse Insights examines the market for sales of plug-in EVs (PEVs) in North America.
Global automotive sales rebounded in 2021, but total volume remains below pre-pandemic levels. Sales of PEVs, meanwhile, saw significant increases, resulting in another year of record sales. This trend holds when looking specifically at North America, with PEV sales in the US more than doubling (up 105%) from 2020 to 2021 against an overall market increase of 3.6%, while sales in first three quarters of 2022 have already surpassed the 2021 total. According to a new report from Guidehouse Insights, annual PEV sales in North America are projected to grow from roughly 1.2 million units in 2022 to 7.6 million in 2031, at a compound annual growth rate (CAGR) of 22.9%.
“The Inflation Reduction Act of 2022 will bring a revised clean vehicle credit program starting this year that will provide a tailwind to PEV sales, especially as local battery production and new raw material supply chains, which are required to qualify for these credits, come online,” says Mike Austin, senior research analyst with Guidehouse Insights. “Automakers and suppliers are accelerating their plans to increase battery production in North America and establish new supply chains outside of current logistics that are largely reliant on components from China.”
New cars and trucks in North America are still limited by supply, and the automotive chip shortage is expected to continue into 2023. Guidehouse Insights expects new models, and specifically PEVs, to be prioritized by automakers and impacted to a lesser degree. Inflation and volatility of battery raw material costs are an increasing concern, leading many automakers to raise prices on PEV models midyear in 2022 in response.
The report, Market Data: EV Geographic Forecast – North America, analyzes EV technology innovations, incentives, policies, and vehicle availability to estimate PEV adoption in the US and Canada on national, state/province, and sub-state/province levels. The analyses are driven by battery pack and technology innovations, fuel prices, model availability, and zero-emissions vehicle (ZEV) mandates. The analyses include passenger car and light truck breakouts in addition to powertrain breakouts by plug-in hybrid EVs (PHEVs) and battery EVs (BEVs). An executive summary of the report is available for free download on the Guidehouse Insights website.
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today’s rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.
Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has over 16,500 professionals in over 55 locations globally. Guidehouse is a Veritas Capital portfolio company, led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.
* The information contained in this press release concerning the report, Market Data: EV Geographic Forecast – North America, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.
For more information, contact:
Cecile Fradkin for Guidehouse
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SOURCE Guidehouse Insights