Benzinga - by Anan Ashraf, Benzinga Editor.
Cox Automotive anticipates a surge of over 70 electric vehicles entering the American EV market within the next two years, setting the stage for an impending EV “stampede.”
What Happened: In the current year, Cox projects the introduction of 37 EV models from various automakers, including heavyweights such as Mercedes Benz Group (OTC:MBGAF), Tesla Inc. (NASDAQ:TSLA), Polestar Automotive (NASDAQ:PSNY), Fisker Inc. (NYSE:FSR), Volkswagen AG (OTC:VWAGY), and Toyota Motor (NYSE:TM). The year 2024 is envisioned as a pivotal one for the EV market, with an even more substantial influx of new electric vehicles.
Similarly, in 2025, the EV market is expected to witness the addition of new vehicles, albeit at a slightly slower rate compared to 2024, with around 34 new EV models, according to the insights provided by the automotive consultant.
“In the EV market, 2024 will be the year of more,” Cox said in its report.
The preceding year marked a significant milestone for the electric vehicle sector, with over 1.4 million EVs sold in the United States, reflecting a remarkable 50% increase within a year. Tesla emerged as a dominant player, accounting for a majority of these sales with 654,888 vehicles sold in the U.S.
However, the distribution of EV adoption exhibited a notable imbalance, primarily concentrated in states like California, followed by Washington and New Jersey. In contrast, states such as North Dakota and West Virginia experienced lackluster EV adoption.
Chart courtesy: Cox Automotive
Cox Automotive attributes this discrepancy to a potential deficit in product knowledge, unclear value propositions, and insufficient consumer interest, highlighting an opportunity for the expansion of EV sales.
What’s Ahead For Auto: Cox Automotive expects a sustained recovery in new vehicle sales throughout 2024, rebounding from the pandemic-induced slowdown. This recovery is anticipated to benefit from downward pressure on prices and declining inflation throughout the year. Furthermore, interest rates are projected to decrease over the year, although remaining relatively high.
In the preceding year, approximately 15.5 million new vehicles were sold in the U.S., surpassing the 13.8 million vehicles sold in 2022. Leading the sales was Detroit-based General Motors (NYSE:GM), followed closely by the Japanese automaker Toyota.
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