Regulatory uncertainty slowing US electric vehicle adoption: report

Core Insights - The hybrid vehicle segment in the U.S. is projected to grow significantly, with hybrids expected to account for 34% of all passenger vehicles sold by 2034, and sales anticipated to exceed 3 million units by next year [1][3]. U.S. Market Trends - Despite a temporary spike in EV sales due to tax credits, the timeline for 50% EV adoption in the U.S. has been pushed to 2039, five years later than previously expected [3]. - EV sales growth in the U.S. is forecasted to slow down due to factors like the elimination of federal tax credits and trade tensions, with EVs projected to make up only 11% of light vehicle sales by 2029 [4][6]. - U.S. automakers are currently absorbing tariff costs by maintaining stable prices and shifting towards higher-margin vehicles, but this strategy's sustainability is uncertain [9]. Global Market Comparisons - In Europe, EV adoption is expected to slow until 2027 due to economic pressures and reduced incentives, but a rebound is anticipated post-2027, with EVs projected to account for 50% of vehicle sales by 2032 [13][14]. - China is expected to lead in EV adoption, with pure EVs projected to account for over 50% of light vehicle sales by 2033, supported by favorable government policies and consumer willingness [15][16]. Future Projections - By 2050, nearly all cars sold in China are expected to be battery electric vehicles (BEVs), with BEVs projected to account for 96% of all passenger vehicle sales [17]. - Globally, EV sales are predicted to reach 67 million units annually by 2033, with a potential shift from ownership to access-based models in the early 2040s due to advancements in autonomous mobility [20].