US Electric Vehicle Loyalty and Volumes Reach Record Highs, according to IHS Markit
April 15 2019 - 9:10AM
Business Wire
The US market for fully electric vehicles (EVs) has reached
record volumes with 208,000 new registrations in 2018, according to
recent analysis by IHS Markit (Nasdaq: INFO), a leading business
intelligence firm. The loyalty rates of EV buyers has also
continued to grow.
New registrations for EVs during 2018 more than doubled
year-over-year from just over 100,000 while EV market share has
also increased exponentially, over the past three years. Perhaps
not surprisingly, 59 percent of these vehicles were registered in
California and the section 177 states* which have all adopted the
same vehicle emission standards and have therefore been key markets
for EVs as the OEMs have launched new models. California on its own
accounted for nearly 46 percent (95,000) of new EV registrations in
2018, according to the analysis.
Loyalty rates for EVs are also on a growth trajectory with
nearly 55 percent of all new EV owners who returned to market
during the fourth quarter of 2018 acquiring (purchasing or leasing)
another EV, up from 42 percent in the prior quarter, according to
IHS Markit. The trend continued in January, with nearly 70 percent
of EV owners returning to market for a new EV during that
month.
“EV loyalty rates have been steadily increasing since their
introduction by OEMs. This increase over such a short timeframe
demonstrates that a portion of the US market is highly accepting of
this new technology and has a growing comfort level with it,” said
Tom Libby, loyalty principal at IHS Markit. “As more new models
enter the market, we anticipate an even further increase in loyalty
to these vehicles.”
In addition, IHS Markit forecasts a considerable increase in new
fully-electric models offered in the US market over the next
decade, with over 350,000 new EVs to be sold in the US in
2020, reflecting a 2 percent share of the total US fleet.
In 2025, that figure is expected to rise to over 1.1 million
vehicles sold or a 7 percent share, according to recent IHS Markit
powertrain forecasts.
“A rapid increase in EV nameplates is the catalyst behind the
projected growth throughout the next decade,” said Devin Lindsay,
IHS Markit powertrain analyst. “While relatively successful models
such as the Tesla Model 3 mature in the market, other traditional
automakers will be rolling out not just one EV as we have seen in
the past, but multiple models off dedicated EV platforms.”
Combined with anticipated entries in the market from start-up
automakers like Rivian, Lucid and SF Motors, as well as traditional
manufacturers, US consumers are expected to have substantially more
choice on the dealership floor over the short-term.
The greatest headwind for EV sales in the US may soon be any
elimination or delay to California’s Zero Emission Vehicles (ZEV)
mandate by the federal government. The EPA has proposed to withdraw
the waiver and therefore the ability for California and the section
177 states to regulate greenhouse gases separately from federal
standards. If allowed to stand, this could have a considerable
impact on the nation’s most popular BEV market, IHS Markit
predicts.
As the EV market in the US and other key regions continues to
grow, one thing is clear -- the internal combustion engine is not
going away any time soon, with IHS Markit forecasters anticipating
them to continue to dominate the global market until past 2030.
About IHS Markit
(www.ihsmarkit.com)
IHS Markit (Nasdaq: INFO) is a world leader in critical
information, analytics and solutions for the major industries and
markets that drive economies worldwide. The company delivers
next-generation information, analytics and solutions to customers
in business, finance and government, improving their operational
efficiency and providing deep insights that lead to well-informed,
confident decisions. IHS Markit has more than 50,000 business and
government customers, including 80 percent of the Fortune Global
500 and the world’s leading financial institutions. Headquartered
in London, IHS Markit is committed to sustainable, profitable
growth.
Automotive offerings and expertise at IHS Markit span every
major market and the entire automotive value chain—from product
planning to marketing, sales and the aftermarket. For additional
information, please visit www.ihsmarkit.com/automotive or email
automotive@ihsmarkit.com.
*Editor’s note: ZEV states include Connecticut, Maine,
Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island
and Vermont.
IHS Markit is a registered trademark of IHS Markit Ltd. and/or
its affiliates. All other company and product names may be
trademarks of their respective owners © 2019 IHS Markit Ltd. All
rights reserved.
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News Media Contact:Michelle CulverIHS Markit+1 248 728
7496michelle.culver@ihsmarkit.com
Press Team+1 303 858 6417press@ihsmarkit.com
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