5 Electric Vehicle Trends to Watch in the New Year
All eyes in the automotive world are watching electric vehicle trends for the coming year. Even with interest rates reaching an all-time high and Tesla stock reaching an all-time low, there are high hopes for EVs, and everyone is predicting electric vehicle trends for 2023.
Whether you’re an EV enthusiast or keeping your eye on EV industry trends for fun, there are plenty of reasons to be optimistic. As the leading installer of EV charging stations in Gilroy, CA, and the Santa Clara Valley, the team at Watson’s Charging Stations & Electric wants to share the electric vehicle trends you should look out for in 2023.
The US Market Is Catching Up
In the first half of 2022, global EV sales grew by nearly 60%. That’s more than four million units sold in just six months. Half of the 20 million EVs on the road are in China, and a third are in Europe. The United States currently makes up only a sixth of global EV registrations.
With more American auto manufacturers investing in electric vehicle production, U.S. sales are expected to multiply in 2023. Many drivers are incredibly excited about the newest EVs to hit the market, like the Ford F-150 Lightning, Cadillac Lyriq, GMC Hummer EV, and Jeep EV. With options like these coming to market, it is no wonder EVs are gaining momentum.
U.S. EV market share was at 2.2% in 2020, 4.1% in 2021, and ended 2022 near 8%. These numbers are expected to climb in the new year.
Unfortunately, even with higher EV demand in the U.S. market, the production of new vehicles is still slow. The Ford F-150 Lightning, for example, has over 200,000 people on the waitlist. Ford has only been able to produce 15,000 units in 2022, so quite a few folks have a while to wait to get their EV pickup trucks. The U.S. market share could easily double or triple, but there aren’t enough available units.
EVs Are Coming to Rural Areas
One of the most interesting electrical vehicle trends coming in 2023 involves EVs in more rural areas. It used to be that EVs could only be found in urban areas. EV battery limitations and lack of public electric car charging stations make EVs used to make electric vehicles impractical away from the city.
The good news is that technology is improving. The recently announced Ram Revolution (Ram’s electric pickup truck) boats a driving range of 500 miles on a single charge. The EV charging industry trends also point to more people hiring an electrician with a license to install an EV charger at home. Rural drivers are waking up to the possibility of having longer ranges and more accessible charging abilities. Throw in the capacity of EVs to operate as electric home backup batteries and even supply energy to power tools, and we will see an uptick in EV purchase out in the country.
The Inflation Reduction Act
President Biden signed the Inflation Reduction Act (IRA) last fall to improve eco-friendly technologies. The IRA allows for tax rebates on installing an EV charger at home, updating your electrical panel, and purchasing a new or used electric vehicle. Of course, the rules for earning a tax break on EV purchases are somewhat strict, and buyers must purchase EVs primarily made in the U.S. and use batteries mainly produced in the U.S.
At first, it was not clear how auto manufacturers would respond. The rules of the IRA eliminated quite a few vehicles from the promotion. Surprisingly, American automakers are responding positively to the IRA. There have been numerous announcements regarding new or accelerated manufacturing and assembly plants in North America for electric vehicles, charging stations, and batteries.
Fast Charging Stations Are Improving
When you purchase an EV from a dealership, you get a Level 1 EV charger. This charger is an electrical cable plugs into your car and into a regular 110 outlet. Many drivers do not realize that their Level 1 charger needs a dedicated line to work correctly and safely. When they hire a Gilory electrician to create a dedicated line, they learn that adding a Level 2 charger is quite affordable. The Santa Clara County electrical contractor may need service panel upgrades, but the higher-speed charger is well worth it. Instead of taking all night to charge an EV, a Level 2 charger can give a car a full charge in just a few hours.
You should also see other electric vehicle trends around public fast-charging networks. The IRA puts aside money to improve and add public charging stations across the country. Even though 80% of EVs are charged at home, people still need a place to get a boost when traveling. As more Level 2 and Level 3 charging stations are added to highways and byways, taking your EV on a road trip will be more practical.
Electric Vehicle Trends Toward Electrification
In many ways, owning an electric vehicle is like a gateway drug to joining the electrification movement. Electrification is moving away from fossil fuels and relying on more renewable energy sources. Once consumers see the benefits of driving an EV, they start looking at other eco-friendly additions.
It is only a matter of time before EV owners consider adding solar panels to their homes, creating microgrids, upgrading to electric appliances, and taking other green initiatives. Electrification is the most exciting of all of the electric vehicle trends for 2023.
If you want to know more about what steps you can take to join the electrification movement or upgrade your electrical grid, contact Watson’s Charging Stations & Electric. We are the premier group of electricians in Gilroy, CA, and the Santa Clara Valley. Whether you’re ready to add an EV charger to your garage or have another electrical project in mind, our team is on the job. Call us today to schedule your free consultation and take the next step toward completing your electrical job.