Why Electric Cars Are Taking Over in the United States

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(Newswire.net — July 22, 2023) — Electric vehicles (EVs) are on the rise. According to the U.S. Bureau of Labor Statistics (BLS), electric car sales in the U.S. increased from a mere 0.2% of total car sales in 2011 to 4.6% in 2021. The number of EVs on the road during the same period went from 22,000 to a little over 2 million.

What’s going on? And are gas-powered vehicles on their way out? Read on to find out!

The rapid innovation behind electric vehicles

To understand the rise of EVs, it’s important to understand the s-curve pattern of innovation. This theory suggests that when a product is released, initial growth is slow as interest in the product takes time to develop and the price is relatively high.

Gradually, word gets out and innovation lowers prices, leading to accelerated growth. Finally, the product saturates the market, once again slowing down growth.

EVs have largely followed this S-pattern, and we are beginning to see them move from the first to the second stage due to innovation and prices falling.

But that’s not all that’s driving EV adoption. Other factors include a rise in consumer interest, favorable government policies, and the car industry getting on board.

Consumer interest in electric vehicles is growing

According to a 2020 Consumer Interest and Knowledge of Electric Vehicles survey, 71% of drivers have at least some interest in getting an EV, with 31% saying they would consider getting, or would definitely get an EV the next time they purchase a vehicle.

Consumers are interested in EVs for many reasons, not least because they want to contribute to a cleaner environment by lowering their carbon footprint. For many, this is the main advantage of EVs.

Some also enjoy the wider selection of cars and the long-term cost savings. On top of what you save on fuel, EV drivers pay less on car maintenance—nearly half as much. And though EV batteries are expensive in their own right, innovation is driving the price of these down, too.

Government incentives to make and buy electric vehicles

Another reason electric vehicles are on the rise is regulatory incentives. Many national and state governments want to promote electric vehicle adoption to lower carbon emissions.

For example, the 2021 Infrastructure Investment and Jobs Act allocated $7.5 billion to building more EV charging stations across the country.

Similarly, consumers often get tax breaks for buying EVs. Right now, those who buy a new EV in 2023 or after are eligible for a $7,500 tax break from the IRS.

Some governments also have zero emissions programs and net zero emissions target dates. Others have placed bans on the sale of new gas-powered vehicles after a certain date or placed EV sale quotas on car manufacturers. Fortunately, many automakers have taken on the challenge.

The car industry’s pivot toward electric vehicles

Not many years ago, it was only a handful of automakers that were building electric vehicles, the most prominent of which was Tesla. These days, however, nearly every car brand is Volkswagen, Ford, General Motors, Volvo, and others.

In fact, many of these companies plan to eventually only build EVs. For example, according to the BBC, Jaguar plans to sell only electric cars from 2025, Volvo from 2030, General Motors from 2035, Ford from 2030 (for all vehicles sold in Europe), and VW said 70% of its sales will be electric by 2030.

Consequently, automakers are investing billions in EV research and development. Sooner or later, EVs are poised to replace new gas and diesel vehicles entirely.

How to go about buying an electric vehicle

If you’re ready to jump on the EV bandwagon, you must do your research. The things to look for in an EV can be radically different than what you’d look for in a regular vehicle—especially when buying a used one.

According to Tiger Okeley at used car dealership Oak Motors, “When you’re in the market for a used EV, it’s best to take it to a mechanic who specializes in EVs or buy from a dealership with a thorough inspection process. We carefully prescreen every used vehicle offered to us because we don’t want a car that isn’t worth fixing up for sale, nor do we want to see a disappointed customer return the car a few months later.”

The key is to talk to qualified EV professionals who can tell you the condition and quality of an EV, whether it’s new or used. From there, you can make a more informed buying decision.