U.S. electric vehicle (EV) sales are projected to capture just 9 percent of the market in 2024, a significant decrease from the previously forecasted 12 percent, according to a report by consulting firm J.D. Power.
The downward revision in EV sales in the U.S. reflects slower-than-expected growth in the first half of the year, attributed to increased competition in the market for alternatives to gasoline-powered vehicles.
This update comes on the heels of Ford Motor’s decision to cancel its planned three-row electric SUV and delay the release of a new electric version of its popular F-150 pickup truck. Ford’s move is part of a broader strategy to cut costs and boost demand amid a challenging market environment, Reuters news report said.
Despite this short-term slowdown, J.D. Power remains optimistic about the long-term growth of the EV market. The firm predicts that EV sales will account for 36 percent of the total U.S. retail market by 2030 and will rise to 58 percent by 2035.
“The current rate of slower-than-expected sales volume is being driven by a combination of relatively near-term variables that will fade as EV adoption continues to reach critical mass,” J.D. Power noted in its report.
The report also highlights similar moves by other automakers, including General Motors, which have delayed or canceled new electric models to avoid significant expenditures on vehicles that consumers are not purchasing as rapidly as anticipated. These strategic adjustments by major carmakers reflect a cautious approach to navigating the evolving landscape of the automotive industry as it transitions toward electric mobility.