J.D. Power Charts Continuing EV Sales Growth

More than 9 percent of U.S. car sales in August were EVs, a portion that J.D. Power forecasts will be the average for the whole year.

The company’s EV Index score for the month rose to 56 on a 100-point scale, marking an all-time high for the benchmark. The company describes the index as a measurement to the path to parity with combustion vehicles for EVs. “July marked the fifth consecutive month that the EV Index rose but it’s the six factors that make up the index that tell the real story of the EV ecosystem’s dynamics,” noted Elizabeth Krear, vice president, electric vehicle practice at J.D. Power.

The company launched the J.D. Power EV Index in 2023 to chart the progress of EVs compared to conventional vehicles. It uses six metrics, which are:

The latest results show that consumers are warming to the idea of buying an EV, reported Krear. “One factor—interest—reached a high for the year with 28 percent of new-vehicle shoppers saying they are ‘very likely’ to consider a battery electric vehicle for their next purchase,” she said.

Attracting consideration is one thing, but closing the deal remains tough, Krear acknowledged. “The industry seems to be struggling to attract more buyers than a year ago, even with the tremendous improvements in another factor, availability.”

While EVs were in short supply previously, now the market is flush with them, as legacy carmakers introduce more new EVs. “Availability has increased 22 points year over year, with 66 percent of shoppers now having a viable alternative to a gas-powered equivalent,” she noted.

High prices continue to deter customers, but some specific segments have seen progress in that respect. “Incentives have helped align prices in popular compact and midsize mass market segments, making them more affordable,” Krear said.

Unsurprisingly, EV charging infrastructure, or lack thereof, continues to be a drag on sales.

“While infrastructure remains insufficient, customer satisfaction with charging in the second quarter improved for a second consecutive quarter,” she said. “Especially noteworthy is the satisfaction experienced by Ford and Rivian owners now having access to the Tesla charging network.”

Unlike whatever shortcomings an EV might have when it is built that it will retain over its life, infrastructure will steadily improve, so people who make the commitment to buy one today can do that knowing that challenges in that respect will diminish with time.

Analysts at Kelley Blue Book remain similarly bullish on EV sales growth, with Cox Automotive Industry Insights Director Stephanie Valdez Streaty stating, “The growth will, at times, be very slow, as all-time horizons in the automobile business are vast, but the long-term trajectory suggests that higher volumes of EVs will continue over time. As EV infrastructure and technology improve, and more models are launched, many shoppers sitting on the fence will eventually choose an EV.”