Ford, General Motors, and Stellantis are predicted to overtake Tesla in terms of electric vehicle market share in the upcoming four years, according to a recent Car Wars report from Bank Of America (BofA).
According to the study, the industry may remain volatile even though legacy automakers are expected to benefit.
The next four-plus years could be some of the most uncertain and volatile for product strategy ever
Car Wars stated on their report
The BofA forecast that the “ICE dominance is over,” with EVs expected to account for a larger share of new model launches from 2024 to 2027. In that time frame, EVs would account for 46% of new launches, followed by ICE vehicles (35%) and hybrid vehicles (18%).
US EV market to soar in 2026
In the first quarter of 2023, EVs surpassed their ICE counterparts in terms of sales growth rate. Total BEV registrations increased by 63 percent year on year to 257,507 in Q1 2023, accounting for 7.0 percent of the total market share, up from 4.6 percent in Q1 2022.
According to the Car Wars report, the expected EV market share in 2026 will be nearly a quarter of total US auto sales. EVs are set to become more affordable in the United States as a result of the Inflation Reduction Act and lower battery and component costs.
According to the report, incentives and cost reductions might boost the US EV market share to 26 percent by 2026.
Tesla’s market share could decline as its rivals launch more innovative products across all market segments. By the end of 2026, the report predicts Tesla’s market share will have decreased from its peak of 78 percent in 2018 to around 18 percent.
Ford and GM’s market share would increase to 14 percent each, with Stellantis accounting for 8 percent of total sales.
Since Tesla hasn’t introduced a brand-new model in a while, an analyst believes the company may experience difficult business conditions in the future. Furthermore, Ford and GM are planning to release several models in the near future.
GM, Ford, and Chevrolet to release more EV models
According to GM CEO Mary Barra, the company is on track to produce 400,000 electric vehicles by the middle of 2024 and a million by 2025.
Insideevs reports that the Chevrolet Blazer EV and Equinox EV are expected to drive volume for the brand after rolling off GM’s assembly lines in Mexico in June 2023. Ford is allegedly working on its second generation of electric vehicles, including the F-150 Lightning electric truck.
Nonetheless, Elon Musk’s company’s current sales record run only foreshadows the market, as mentioned earlier forecast. The company set a new quarterly production record in Q2 2023 and is projected to produce and deliver nearly 2 million EVs this year.
See Also
- Ford, GM, and Stellantis to gain the most EV market share in the US, a report says
- Fisker to penetrate the Chinese EV market in 2023
- Maruti Suzuki unveiled masterplan to dominate the EV market
- Mahindra plans to penetrate the Australian EV market
- EV market predicted to hit $957.06 billion at a CAGR of 24.50% on 2030
