The Bank of America’s (BofA) annual “Car Wars” report predicts that renowned automakers Ford, GM, and Stellantis will earn the biggest electric vehicle market share in the United States for the next four years. However, BofA noted that it would not be easy.
Report highlights
The report suggests that “The next four+ years could be some of the most uncertain and volatile for product strategy ever.” It cites many factors that would drive this turn of events, including the following:
- Increased EV launches
- Uncertainty regarding internal combustion engine (ICE) vehicles
- Possible last-minute product cancellations
BofA strongly believes that “ICE dominance is over,” as it expects EVs to contribute the larger 46% share on new model launches from 2024 to 2027. In contrast, the investment bank forecasts ICE and hybrid vehicles to gain 35% and 18%, respectively.
True enough, EV sales have been increasing, reporting a new record high in Q1 2023. According to Cox Automotive, EVs accounted for more than 7% of the overall auto market in the US for the first time. Even more, the upward trend is not expected to stop or reverse from there.
As per Car Wars analysis, EVs would account for as much as 26% of US car sales by 2026. It cites the Inflation Reduction Act and the increasing EV demand as the main factors pushing the share growth.
Consequently, BofA suggests that Leading American automaker Tesla will suffer a market share decline from a 78% peak in 2018 to approximately 18% by the end of 2026.
“Tesla’s dominance in this still nascent market segment may be coming to an end, it will remain an important factor.”
BofA
As the investment bank guaranteed, the Musk-led automaker will still rise as the “most significant player” in the US EV market. However, its rivals Ford, GM, and Stellantis will be the largest share gainers by 2026.
According to the report, Ford and GM will both account for 14% of the US EV market. Meanwhile, Multinational automaker Stellantis will reach 8% market share. BofA cites asserts that
GM, Stellantis, Volkswagen, and Hyundai/Kia are set to gain significant portions of the market with their projected product pipelines and powertrain offerings. Indeed, these automakers are making significant strides in the EV market and are expected to introduce several new models in the near future.
Detroit’s big three employ varied strategies to compete in the US EV market
The landscape of the electric vehicle market in Detroit is witnessing diverse strategies as the industry embraces sustainability.
General Motors, Stellantis, and Ford, collectively known as the “Big Three,” are taking unique approaches to capitalize on the growing EV demand.
Having achieved a significant milestone by selling over 20,000 EVs in Q1 2023, GM is poised for further breakthroughs. The automaker has ambitious plans to introduce high-volume EVs under the Chevrolet brand, including the Blazer EV, Equinox EV, and Silverado EV. These planned EV launches will aid the company in achieving its annual production target of one million units across ten different by 2025, showcasing its commitment to electric mobility.
GM-owned Cadillac is also set to make an impact in the EV market with the launch of new electric models. The recent teaser of the electric Escalade IQ has generated anticipation ahead of its debut on August 9. Other GM subsidiaries, including GMC and Buick, will introduce their own EV models. Interestingly, they can be similar to the recently released Buick E4 electric SUV in China.
Stellantis, although considered slower in the US EV market, aims to catch up by introducing a significant number of electric models, nearly matching GM’s plans. The automaker has set a target of releasing 75 EV models and achieving five million in sales by 2030. Notably, Stellatis-owned brand RAM is preparing to unveil its first electric pickup. It includes the 2025 RAM 1500 REV, directly competing with Ford’s F-150 Lightning. Jeep, another Stellantis brand, plans to launch its first EVs in the US, namely the Recon and Wagoneer S, later this year.
On the other hand, Ford has taken a different approach by focusing on a select few high-volume models. The company’s flagship offerings include the F-150 Lightning, Mustang Mach-E, and the electric Explorer, which has already been introduced in Europe. Ford has divided itself into three divisions to allocate resources from its internal combustion engine (ICE) vehicle business towards funding its ambitious EV strategy.
Furthermore, the report highlights that Hyundai and Kia have adopted a strategy similar to Volkswagen by introducing a series of EV models (IONIQ 4/5/6/9) just like Volkswagen’s ID series (ID 3/4/5/6/7). In contrast, Japanese automakers like Toyota, Honda, and Nissan currently focus more on hybrid vehicles, positioning them towards the lower end of the market.
The report predicts that other EV automakers like Rivian, Lucid, and Fisker will achieve moderate success in bringing their products to the market.
See Also:
- Tesla maintains its dominance in both European and US electric car markets for January 2023
- Long range BEVs dominated the US market in 2022
- Fiat 500e set to enter the US market in Q1 2024
- US: New vehicle sales to soar 15.6% in May
- US: Tesla on track to beat VW Group, BMW, and Mercedes in Q1 2023 sales
The automotive industry is undoubtedly experiencing a significant shift towards EVs. Ford, GM, and Stellantis are predicted to lead in EV market share in the US.
BofA’s prediction aligns with the increasing momentum of EV sales, which have reached record highs and are expected to continue growing. Excitingly, this transformative shift is reshaping the future of the automotive industry.
