Sales of electric vehicles reached a record high last quarter, indicating that limited inventory and high prices haven't dented enthusiasm for moving away from gas-guzzlers.
New vehicle purchases dropped more than 20% compared to the same time period last year, but EV sales tipped the scales at 196,788—a 13% increase from Q1 according to automotive services organization Cox Automotive.
Cox counted 442,740 sales of electrified cars (combined EVs, hybrids, and fuel-cell-powered vehicles)—12.6% of the US market—between April and June. That's a 12.9% increase from 2021 levels. EVs alone made up 5.6% of the total market, an increase from 5.3% in Q1 and 2.7% in Q2 2021, or just about double year over year.
As gas prices increased (peaking at $5.19 per gallon in June), so did interest in hybrids and EVs. Too much interest can spell disaster for the unprepared, however. As The New York TimesThe New York Times notes, the swift rise in popularity of electric vehicles "has taken the industry by surprise and exposed deficiencies that could slow the transition to battery power"—widely considered essential to curbing climate change.
Automakers are struggling with semiconductor shortages and soaring costs for lithium and other raw battery materials, as reported by the Times, which notes that even those firms already working to upgrade their factories and supply chains won't be able to meet consumer demand for "several years." Other obstacles include charging infrastructure, sizable costs (electric cars in the US cost an average $20,000 more than combustion-engine vehicles), and government policy.
This is just the beginning, though. Experts believe battery-powered car sales will become more commonplace as people trade their gas-guzzling SUVs for eco-friendly sedans, worried that fossil-fuel-powered cars will become obsolete and lose their resale value.