Electrification is expected to bring a serious boost to the United States economy, as more and more models are produced locally.
According to the registration data from Experian (via Automotive News), about 75 percent of all-electric cars, registered in the first 11 months of 2022, were produced in the US.
That’s a very significant portion and the share of US-made BEVs is expected to further increase thanks to the Inflation Reduction Act (IRA), which incentivizes local production of electric vehicles and batteries. Vehicles that do not comply with the IRA requirements will not be eligible for up to $7,500 of the federal tax credit, which is a massive competitive disadvantage.
The top brand in the BEV segment through November was Tesla with 431,740 units and a share of 64 percent (compared to 303,129 units and 70 percent share in 2021). All of the Tesla vehicles were also produced in the US.
The second most popular brand during the period was Ford, but its most popular BEV (the Ford Mustang Mach-E) was produced in Mexico.
BEV registrations in the US by brand – January-November 2022:
- Tesla – 431,740 (up 42%) and 64% share
Model Y – 200,592
Model 3 – 175,661
Model X – 30,125
Model S – 25,362
- Ford – 7.4% share
Mustang Mach-E – 34,643 and 5.2% share
- Chevrolet – 4.7% share
Bolt EV/Bolt EUV – 22,421
- Kia – 4.0% share
EV6 – 19,163
- Hyundai – 3.7% share
Ioniq 5 – 21,086
- Volkswagen – 2.4% share
ID.4 – 16,345
- Audi – 2.2% share
- Rivian – 1.9% share
R1T – 11,637
Overall, BEVs accounted for 5.4% of new car registrations in the US during the first 11 months of 2022, compared to 3% in 2021.
We assume that the gradual electrification of transportation will bring significant improvements in all areas, because not only will a higher percentage of vehicles be produced locally, but also batteries and other elements will be produced locally. On top of that, electricity is produced locally, at a growing percentage from renewable energy sources.
The progress is probably the highest in the premium/luxury car segment, which – thanks to Tesla – is now not only more electrified, but also a higher percentage of vehicles are locally produced.
Premium brand registrations in the US – January-November 2022:
- Tesla: 431,740 (up 42%)
- BMW: 296,669 (down 6.4%)
- Mercedes-Benz: 247,932 (down 0.6%)
- Lexus: 242,611 (down 17%)