EV Tax Credit Changes Have Shuffled EV Sales Rankings

Changes in the EV tax credit rules have been confusing and made it hard to determine which cars are eligible for credits. Some automakers argued that the rules would unfairly harm their business and ability to compete, and we’re now starting to see how some of the changes are shaking out. Automotive News reported that the top eight EVs in the U.S. in January were built in North America, while Hyundai and Kia fell back.

The rule changes have so far benefitted Tesla, Ford, and Volkswagen since the German automaker moved some ID.4 production to its Chattanooga factory in 2022. At the same time, the Hyundai Ioniq 5, which was previously selling in the number-seven spot, dropped to ninth, and the Kia EV6 was knocked out of the top ten altogether from its previous spot in eighth.

Many automakers are scrambling to get a production foothold in the U.S. after the Inflation Reduction Act updated EV tax credit rules to include a final assembly location in North America. Audi, Mercedes-Benz, and others have moved or plan to move some manufacturing here to qualify for credits. 

Hyundai and Kia will eventually get things together, but another part of this story is the growth that EVs have seen in the U.S. market. Though still in single-digit percentages, new EV registrations have grown 74 percent from 2022 to 7.1 percent of the U.S. light vehicle market. 

[Image: Ford]

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from TheTruthAboutCars https://www.thetruthaboutcars.com/cars/news-blog/ev-tax-credit-changes-have-shuffled-ev-sales-rankings-44499862?utm_medium=auto&utm_source=rss&utm_campaign=all_full