Are EV sales slowing — or setting new records? The correct answer is, both.

Are EV sales slowing — or setting new records? The correct answer is, both.

  • Post author:
  • Post category:Business


Electric vehicles are all the rage at the four-unit brick building in McKinley Park where three generations of the Breems family live.

After years of encouragement from Joel Breems, the only sibling who does not live at the building, Kara Breems and her husband, Tony Adams, bought a Tesla Model Y in August. So did the other Breems sibling, Daniel, and his wife, Heather.

Not to be outdone, the siblings’ parents, Helen and Brad, took the plunge a few weeks later, bringing home a third EV, a royal blue Kia EV6.

“We’re all super-excited,” said Kara Breems, 48.

The Breems family is part of a good news-bad news story on EV sales that’s making for seemingly contradictory headlines, including one — “GM scales back EV plans” — that’s displayed prominently in an ad that Republican presidential candidate Donald Trump has been running in the key battleground state of Michigan.

Electric vehicles continue to grow in the United States but not at the pace of 2021 to 2022, when estimated annual increases were 89% and 65%, according to data from Cox Automotive, an automotive services and technology provider.

The 2023 annual increase was 46%, and in the most recent quarter of this year, year-over-year growth was about 11%.

The slowdown — fueled in part by customer concerns about cost and range — hasn’t stopped the United States, or Illinois, from setting new annual records for EV sales, including 1.2 million electric cars sold nationwide in 2023.

But it has created problems for auto manufacturers and dealers, including, at times, a surplus of cars in dealers’ lots, and it has forced some car companies to reconsider short-term goals.

GM, for instance, has delayed some aspects of its EV plan, including an electric Buick, but recently reiterated its commitment to sell only electric cars by 2035.

“You’re seeing delays” by car manufacturers,” said Andrew Loh, Boston Consulting Group managing director and senior partner.

“It’s not full-out cancellations, but they’re like, we need to go back to the drawing board a little bit to think about how we’re actually going to make these profitable, and once we’re ready, then we will launch our next generation (of vehicles).”



Source link