By (Reuters) – U.S. electric vehicle (EV) sales are expected to reach just 9% of the market this year, consulting firm J.D. Power said in a report on Wednesday, lowering its previous forecast of 12%.
The automotive consultant attributed the cut in sales forecast to a slower-than-expected growth rate for the first half of 2024 due to increased competition in the market for gasoline-powered vehicle alternatives.
The revised forecast comes days after Ford Motor (NYSE:F) said it was scrapping a planned three-row electric SUV and pushing back a new electric version of its best-selling pickup, the F-150, as it focuses on cutting costs to stimulate demand.
Despite the near-term slowdown, the consulting firm said it expects EV sales to reach 36% of the total U.S. retail market by 2030 and 58% by 2035.
“The current rate of slower-than-expected sales volume is being driven by a combination of relatively near-term variables that will fade as EV adoption continues to reach critical mass,” J.D. Power said.
Ford, General Motors (NYSE:GM) and other carmakers have also delayed or canceled new electric models to avoid spending heavily on vehicles that consumers are not buying as quickly as anticipated.