IHS: EVs Will Reach 7.6% Market Share in 2026

LONDON — The sheer number of new electric-vehicle models advancing on the U.S. auto retail market will help EVs claim 7.6% of all new-unit sales in 2026, according to the latest research by IHS Markit. EVs accounted for only 1.2% of sales in 2018, when 18 such models were available; by 2026, IHS expects that number to grow to 133.

“With several factors driving automakers to invest in a zero-emissions future, IHS Markit forecasts explosive growth in the number of electrified powertrain offerings in the U.S. between 2018 and 2026,” said Stephanie Brinley, the firm’s principal automotive analyst.

Earlier this month, a AAA survey revealed Americans are more likely to believe most new vehicles will be fully autonomous than electric by 2029. In an April 2018 interview with Auto Dealer Today, ChannelNet’s Paula Tompkins urged dealers to keep pace with new standards for efficient sales and effective customer service established by EV manufacturers.

IHS forecasts sales of 1.28 million new electric vehicles in 2026, an 543% increase from the 199,270 sold by U.S. dealers last year. By 2023, 43 established and upstart factories will offer at least one EV option compared with 14 brands offering EVs in 2018, according to the report. Tesla, whose $35,000 Model 3 sedan helped sales of all EVs more than double from 2017 to 2018, is poised to remain the segment leader — for now.

“Automakers across the globe are making massive bets on the future of EVs, with VW perhaps making the most aggressive moves in this segment,” Brinley said. “The investment will support what is expected to be a fundamental shift in propulsion systems offered in the decades to come, with the billions in investment earmarked so far only the beginning of the change.”

Originally posted on Auto Dealer Today