US: xEV Share Out Of Total Vehicle Production Doubled In 2021

Plug-in car production significantly accelerated in recent years.

By: Mark Kane

Aug 30, 2022 at 1:02pm ET

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Growing sales of plug-in electric cars have finally been reflected in the US production stats, although non-rechargeable hybrids are still noticeably ahead.

According to the Department of Energy (DOE)’s Vehicle Technologies Office, xEVs (BEVs, PHEVs, HEVs) car production noticeably increased in recent years, especially in 2021 when the xEV share nearly doubled year-over-year to roughly 14% or so.

It's interesting that diesel also improved its position, while gasoline car production is decreasing. The hydrogen fuel cell vehicles were not included in the chart, as their share is basically zero.

Conventional hybrids (HEVs) noted an 8.9% share last year, which is about two times more than all-electric and plug-in hybrids counted together. The first mainstream hybrids entered the US market in the 2020 model year. In the case of BEV/PHEV it was the 2011 model year (Nissan LEAF and Chevrolet Volt in December 2010), although of course, some EVs were available earlier.

Light-Duty Vehicle Production by Technology, MY 200-2021

Source: U.S. Environmental Protection Agency, 2021 EPA Automotive Trends Report, EPA-420-R-21-023, November 2021.

It's always unknown what the future will bring, but the general expectation is that xEVs, especially BEVs, will rapidly expand this decade.

The year 2022 might be spectacular because the US largest electric car plant (Tesla Factory in Fremont, California) is running at a record rate. At the same time, other manufacturers are ramping up their BEV plants, including Ford, General Motors. On top of that, various foreign manufacturers are launching local production of their first all-electric models in the US (just a few days ago we heard about Mercedes-Benz, following Volkswagen).

What do you think?

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We strongly believe that soon, most brands will produce electric cars locally and that the volume will quickly increase.

It's a once-in-a-century transformation time, associated with massive capital investment in car manufacturing plants and new battery plants, electric motor plants, power electronics plants, equipment plants and other, which together should give a huge boost to the economy.