A Tesla Model Y is seen in a Tesla car park on May 31, 2023 in Austin, Texas. Tesla Model Y becomes the best-selling car in the world in the first quarter of 2023.
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DETROIT — Legacy automakers continue to pledge to dramatically increase production and sales of all-electric vehicles, but so far their efforts have done little to shake up this much-watched emerging market.
Despite a significant year-over-year increase in sales, industry leaders tesla remains the largest seller of electric vehicles and has extended its lead over traditional automakers.~300,000 units ahead of nearest competitor Hyundai Motor and General Motors As of the first half of this year, according to Motor Intelligence. That compares with a shortfall of about 225,000 in the first half of 2022.
Tesla does not break out sales figures by region, but it expects to have sold 336,892 vehicles to U.S. retail and fleet buyers in the first half of the year, up 30% from a year earlier, the auto data firm reported.
Meanwhile, EV sales at Hyundai Motor Co. (which includes the Kia brand owned by the same parent company) rose about 11% to 38,457 units during the period. GM, No. 2 in second-quarter sales of electric cars and trucks, more than quadrupled to 36,322 through June from a year earlier.and Volkswagen Electric vehicle sales more than doubled to 26,538 through June.
Ford, The company ranked second in electric vehicle sales last year behind Tesla, according to Motor Intelligence, breaking into the top five with 25,709 sales through June. Ford’s electric vehicle sales rose just 12% from a year earlier as the automaker shut down to restructure some factories, such as the one in Mexico that makes the electric Mustang Mach-E crossover.
“Our electric vehicle sales continue to grow. We restructured our factories earlier this year, and the improvement in Mustang Mach-E inventory flow that started to emerge late in the second quarter helped Mustang Mach-E sales climb 110% in June. %,” said Andrew Frick. Vice President, Ford Sales, Distribution and Trucks, thursday said In sales release.
Tesla’s first-half sales up 30% year-on-year, thanks to higher output A new factory in Texas is coming online and ramping up production. However, this is not enough to keep up with the overall growth of the EV market.
Tesla’s market share of U.S. electric vehicle sales is down nearly 10 percentage points from a year ago, accounting for 60% of domestic electric vehicle sales, according to Motor Intelligence.
Tesla’s market share decline comes as more competitors enter the segment, leading to overall market growth. U.S. electric vehicle sales rose about 50% through June compared with the first half of 2022.
Traditional automakers as well as emerging companies such as rivian car, has been trying to ramp up production of all-electric vehicles, but many are still small. According to Motor Intelligence, besides the No. 1 company, only five other companies have US market shares between 1% and 4%. There are many other countries with rates below 1%.
In the first half of this year, Tesla delivered more than 889,000 electric vehicles globally, including 466,140 in the second quarter. Tesla aims to produce at least 1.8 million electric vehicles by 2023, and its production is expected to continue to grow.
Chief Executive Elon Musk has told shareholders that the Texas plant will be the most productive auto plant in the United States once it is fully operational. Last year, Musk said the Texas plant aims to produce 500,000 vehicles a year by the end of 2023.
Hyundai rises, GM disappoints
Hyundai’s No. 2 spot is especially notable considering that its vehicles are not eligible for up to $7,500 in federal electric vehicle tax credits unless they’re leased.Those ones The incentives are complex and designed to benefit EVs produced in North America. Hyundai’s EVs are currently imported from overseas.
The South Korean automaker has been exploiting the lease loophole under the Biden administration’s Inflation Cutting Act. Randy Parker, chief executive of Hyundai Motor America, said the Hyundai brand’s EV lease volume has increased from about 2% this year to more than 30% now.
“It’s not a level playing field and we’re certainly not happy with that. But these are the cards that have been dealt and we’re trying to play the deck as best we can,” Parker said in a conference Wednesday. Talk to reporters.
Hyundai Ioniq 5 on display at the New York Auto Show on April 13, 2022.
Scott Mir | CNBC Money
GM’s electric vehicle sales have so far been disappointing, especially new models featuring the automaker’s “Ultium” battery technology. The automaker has been criticized for not ramping up production of its latest electric vehicles, such as the GMC Hummer and Cadillac Lyriq, quickly enough.
The vast majority of GM’s EV sales in the first six months of the year were the outgoing Chevrolet Bolt model, which is due to end production later this year.
GM Chief Executive Mary Barra reiterated last week at the Aspen Ideas Festival that production of the company’s new electric vehicles is being constrained because domestic production of its batteries is taking longer than expected.
Barra said GM plans to match Tesla’s sales within a decade as the automaker rolls out more mainstream electric vehicles such as the Chevrolet Silverado, Blazer and Equinox later this year. . It will also launch a new electric van in 2023 and the Celestiq, a custom Cadillac EV worth more than $300,000.
The Detroit automaker said it plans to produce 150,000 electric vehicles for the U.S. market this year.
— CNBC’s Phil LeBeau and Lola Kolodny contributed to this report.
Disclosure: NBCUniversal News Corporation (owned by CNBC) is a media partner of the Aspen Festival of Ideas.
General Motors Chairman and CEO Mary Barra speaks during the unveiling of the Cadillac Celestiq electric sedan on October 17, 2022 in Los Angeles, California.
Frederic Brown | Frederic J. Brown AFP | Getty Images