‘Electrified’ Vehicle Demand Surges

By Staff Writer July 27, 2021 539

Kelley Blue Book reports no segment is growing more quickly and relentlessly than electrified vehicles – defined as the combined total of electric vehicles (EVs), hybrids and plug-in hybrids. New-vehicle demand is up across the board as the country emerges from the depths of last year’s pandemic-ridden 2020, and while inventory-shortage challenges and supply-chain struggles remain, the general public’s interest in electrified vehicles continues to grow.

As automakers produce more electrified vehicles, consumers are increasingly eager to buy them. According to an analysis of Q2 2021 data from Kelley Blue Book, sales of pure EVs surpassed 100,000 units in the quarter – a first – and hybrid sales were over 250,000 units. Sales of electrified vehicles for Q2 climbed 201.1% year-over-year, reaching beyond 375,000 total combined EVs and hybrids. Accordingly, electrified vehicles are capturing more total market share as consumer demand expands. Electrified vehicle sales accounted for 8.5% of total sales in Q2, up from 7.8% in Q1 and 4.2% in Q2 2020.

 2021 North American Utility Vehicle of the Year, Ford's Mustang Mach-E! 

 

Gas prices continue to increase – according to AAA, with prices rising 40% from the beginning of the year – and research consistently shows that when prices are up, consumers start dreaming about more efficient vehicles.

“While low inventory could impact the market’s current trajectory, it’s still safe to say that 2021 will be a record-setting year for electrified vehicles in the United States – and we’re confident that 2022 will beat 2021,” said Matt DeLorenzo, senior managing editor for Kelley Blue Book.

Consumers can’t buy a new Toyota Sienna minivan without buying a hybrid, and hybrids now account for roughly 25% of Toyota’s total volume. Hybrid off-roaders like the Jeep Wrangler 4xe satisfy the needs of the outdoorsy crew, and luxury seekers will find more plug-in hybrid models available in increasing volumes.

Rivain's R1S debuts in early 2022. The company has already announced the opening of its second production facility .

 

EV sales are charged up by new products like the Ford Mustang Mach-E and Volkswagen ID.4. While Telsa is still the dominant force in the EV market, its notable market share lead continues to erode even as sales increase. Tesla’s Model Y remains the best-selling EV on the market – one in three EVs sold is a Model Y – but as the months and quarters pass, Tesla represents a smaller piece of the growing electrified vehicle pie. In Q2, Tesla’s share of the EV segment in the United States stood at 64%, down from 71% in Q1 and 83% a year earlier.

There are quite a few EV auto start-ups bringing some competition to the establishment to keep an eye on . Startups like Rivain, Fisker, Arrival, Faraday Future, Lucid, Lordstown Motors and others. It’s going to be a huge battle over who will dominate the EV landscape over the next 10 years. 

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Last modified on Friday, 30 July 2021 14:55