Electric vehicles are a hot topic in the auto industry, despite representing a relatively small segment of the current market. As the sales numbers for 2022 continue to take shape, it is clear that 2022 is representing a strong growth year for the EV market, with broader recognition amongst consumers, sales bucking the down-market trends, and demand outpacing supply. Fortune termed Q1 a “blockbuster” quarter for electric vehicles.
Battery-electric vehicles are continuing their climb to new heights of popularity in the U.S., with a 60% jump in registrations in Q1 of 2022. Tesla models comprised 75% of those sales in Q1 2022, but a wider swath of automakers are starting to make inroads to the electric vehicle market, in turn accelerating the growth of the broader EV market. In contrast to EV growth, the overall auto industry experienced a 15.3% decline in new vehicle sales during Q1.
Automakers cannot keep up with the EV demand. Audi announced that its Q1 2022 sales decreased by 16.8% overall, whereas all-electric vehicle sales in Audi’s lineup jumped by 66% as compared to a year ago. Hyundai doubled its all electric car sales in March 2022. Mercedes saw a 37% climb in EV sales, and even announced this week that it was essentially sold out of EVs, unable to keep up with market demand for the vehicles.
The trend has continued after Q1. Ford just announced that its EV sales grew 139 percent in April 2022, primarily riding the strong growth of its Mach-E SUV. Global sales also reflected similar growth patterns. Global battery electric vehicle sales more than doubled in Q1 2022.
Rising gas prices also have many consumers rethinking electric vehicles. Gas prices around the country are nearly double what they were last year, and customers are feeling the pinch. Although the U.S. still trails Europe and China in electric vehicle adoption, the gains in Q1 of 2022 and external factors, such as gas prices, could mean the U.S. is poised for explosive EV sales growth.