We’re still early into the EV revolution, but recent data analysis shows that the adoption of electric vehicles
is heading in the same direction as smartphones. Electric cars accounted for 5% of all U.S. auto sales in the fourth quarter of 2021, a figure that’s proved to be a landmark for EV adoption in other countries.
Jerry
, your car insurance super app
, took a closer look at this data and the projections ascribed from it to give you the inside scoop on where the adoption of electric cars could be headed.Electric vehicle sales could accelerate soon
Five percent might not seem like a lot, but in 18 other countries, it’s signaled the beginning of mainstream acceptance of eco-friendly powertrains, according to Bloomberg
. The media outlet compared EV adoption to that of other technologies like smartphones and televisions. The data showed a recurring S-shaped growth curve where sales are slow at first before quickly accelerating after the initial phase.
Bloomberg then compared the momentum of EV adoption in the U.S. to regions and markets with more progress like Europe and China. In most cases, the moment of accelerated growth occurred soon after the 5% marker was reached.
Norway, China, and South Korea are just a few examples of countries that saw a massive increase in EV sales once after the 5% milestone. If the U.S. follows a similar pattern, EV adoption here could reach 25% by 2025.
Obstacles EV adoption still needs to overcome
If the projection is correct, the Biden Administration could reach its EV adoption goal a full five years early. But the future of electric cars is far from certain. The process relies on automakers to pivot their production lines quickly and remain on board even when times are tough.
Bloomberg’s analysis showed that on a brand-by-brand basis, EV sales tend to reach the “acceleration” phase after sales account for 10% of an automaker’s business.
The transition also needs to grow globally to successfully replace gas-powered cars. Even though global sales have tripled in the last two years, the growth has come almost completely from the U.S., Europe, and China.
Regions like South America, Africa, and Southeast Asia have yet to show any movement toward the new technology.
EV ownership costs
Whether EVs take over the streets also depends on consumer costs and convenience. The government and industry are making a lot of headway to offer the infrastructure needed for the full adoption of electric vehicles, but the initial cost of ownership has hit a few speed bumps.
While Tesla
and other makers promised to lower prices in the past, commodity prices and supply chain issues have sent the cost of most electric vehicles in the opposite direction. At the same time though, brands like Chevrolet and Nissan have managed to lower the price tags on their entry-level models like the Chevy Bolt and Nissan Leaf. Coverage for these models has also normalized.
If you’re ready to take the plunge and buy an electric car, Jerry can help you find cheap car insurance. A licensed broker that offers end-to-end support, the Jerry app gathers affordable quotes, helps you switch plans, and can even help you cancel your old policy.
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