Electric Vehicle Sales Remain A Bright Spot in Industry, Outpace Demand

11 May 2022 Dashboard Insights Blog
Author(s): Lauren M. Loew

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.

This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney. This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary. The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites. In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.

Insights