As the price and reliability of electric cars improve, manufacturers are now seeing adoption rates of the technology pick up. The U.S. in particular is seeing sales of plug-in electric vehicles (PEVs) soar, according to a new report from market research firm Navigant Research.
The firm's report predicts that PEV sales will grow 18.6% annually in the years between now and 2022. Sales are expected to be particularly high in a handful of states, including California, Washington, Florida, and New York. By percentage, Hawaii and Oregon are also expected to enjoy high PEV sales.
“The market for plug-in electric vehicles is beginning to mature now that the most popular models, the Chevy Volt and Nissan Leaf, are available in all North American markets, and Ford, Mercedes Benz, Toyota, Mitsubishi, Honda, Fiat, and Tesla are all ramping up production of competitive vehicles,” said David Alexander, senior research analyst at Navigant. “BMW and Volkswagen will soon add to the choices, and greater availability of charging infrastructure is supporting this growth. The majority of PEV sales will remain close to major cities on the east and west coasts.
Tesla Motors in particular has seen explosive growth over the past year. The company recently announced that its Model S electric car outsold luxury car brands such as Porsche, Lincoln, and Jaguar in the state of California. It also this summer paid off a massive government loan years before it was due.