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Despite the recent slowdown in EV purchasing, a new analysis finds that sales of plug-in cars will surge in the U.S. over the next three years.
EVs accounted for 10 percent of new car sales last year. If existing tax incentives stay in place, they will reach close to a third of sales in 2027, according to Bloomberg New Energy Finance.
Going forward, analysts project that EVs will make up nearly half of new sales by 2030, meaning the U.S. is on track to meet a key climate goal of the Biden administration.
Analysts say that EVs sales will begin to surge as U.S. carmakers — such as Ford and Rivian — roll out more affordable models, and overseas carmakers — such as Hyundai, BMW, and Toyota — open up factories in the U.S.
A recent analysis by market research firm Gartner finds that, by 2027, battery-powered vehicles will generally be cheaper to produce than comparable gas-powered cars.
Looking abroad, analysts are more bullish on the short-term forecast for EVs. In Europe, they say EVs will make up 41 percent of new sales in 2027, and in China, 60 percent.
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