The National Automobile Dealers Association (NADA) has disclosed that the widespread acceptance of battery electric vehicles (BEVs) in the North American market is projected to take longer than previously expected. During the recent Finished Vehicle Logistics North America 2024 conference, Patrick Manzi, NADA’s chief economist, delivered this significant update to industry delegates. He stressed that despite increased market share in recent years, full-scale adoption of BEVs is not imminent in the region.
Manzi underscored the gradual decline in dominance of internal combustion engines (ICE) in the powertrain sector. He observed the gradual but steady rise in market share by hybrids, BEVs, and plug-in hybrids. However, he also noted that while BEVs exhibited substantial growth in prior years, this momentum has considerably slowed in recent months. The increase in market share for BEVs from April 2023 to April 2024 year-to-date only rose by a tenth of a percentage point, from 6.9% to 7%. Conversely, hybrids and plug-in hybrids have experienced significant gains during the same period.
Manzi conveyed that the current trend suggests that hybrids and plug-in hybrids are acting as a transitional bridge towards achieving widespread BEV adoption. He acknowledged that although the eventual shift to BEVs is inevitable, the transition is expected to take much longer than initially predicted. Despite a slight decrease in BEV market share compared to 2023, the actual sales figures have consistently increased by 3-5% each month this year. This indicates that consumers are recognizing the value proposition in choosing a hybrid vehicle.
In terms of original equipment manufacturer (OEM) market share, General Motors (GM) remains at the top with 16%, while Toyota holds the second position with 15.3%. Manzi also highlighted the significant market presence of Tesla, which operates without dealers. Tesla has managed to capture about 4% of the market share, positioning it slightly below Subaru (4.1%) and slightly ahead of Volkswagen (3.8%).
The Finished Vehicle Logistics North America 2024 conference, held from 21-23 May at the Waterfront Beach Resort in Huntington Beach, California, provided industry experts with a platform to address critical issues and opportunities in the FVL sector. This included discussions on addressing the capacity crunch in rail, road, and sea transportation, leveraging data and analytics for real-time improvements, implementing electric vehicle (EV) strategies, and exploring partnerships across the vehicle logistics supply chain to drive decarbonisation efforts.
The insights shared at the conference shed light on the evolving landscape of the automotive industry and highlighted the complexities involved in transitioning towards widespread adoption of BEVs in North America. These deliberations are instrumental in shaping the future strategies of stakeholders within the automotive and logistics sectors.