(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 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 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.
(Reporting by Nilutpal Timsina and Rhea Rose Abraham in Bengaluru; Editing by Rashmi Aich)
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