Apr 14, 2023 - News

Utah's EV registration rates outpaced nation in January

Data: S&P Global Mobility; Chart: Axios Visuals

Electric vehicles accounted for 7.2% of monthly new vehicle registrations in the Salt Lake City area in January — up from nearly 3% in January 2022, Axios' Joann Muller reports.

Zoom out: Nationally, EVs accounted for 7% of new vehicle registrations in January, up from 4.1% the same month last year.

Why it matters: The growth is another sign that the EV transition is gaining momentum. EVs aren't just for early adopters anymore.

  • With broader selection and signs of moderating prices, mainstream car buyers are increasingly turning their curiosity into purchases.

State of play: The Salt Lake City Council approved a measure earlier this month that requires 20% of off-street parking spaces at new apartment buildings to have the electric infrastructure set up for future EV charging stations.

Of note: While the EV pie is growing, Tesla's nationwide market share continues to shrink — from 72% in January 2022 to 54% a year later — as rivals introduce new models.

Axios has tracked the historic shift away from gasoline using vehicle registration data from S&P Global Mobility.

  • In 2022, EVs comprised 5.6% of all new U.S. car registrations.
  • That's up from 3.1% in 2021 and 1.8% in 2020, but still way behind China and Europe.

Reality check: Less than 1% of the 279 million cars and light trucks on American roads are electric.

  • It will take a couple of decades for the transition from gas to electric vehicles to be complete.

Driving the news: Existing consumer tax credits for EV purchases are being reworked — again — in part to bolster U.S. manufacturing and reduce reliance on China.

  • Changes to the existing $7,500 tax credit will likely affect the pace of adoption.
  • On March 31, the U.S. Treasury Department spelled out how new sourcing requirements for battery components and critical minerals under the Inflation Reduction Act will be implemented — rules that affect which vehicles qualify for tax credits moving forward.
  • A list of qualifying vehicles will be announced in mid-April, but few of today's EVs are expected to meet the new standards.

The intrigue: Anyone racing to snag the $7,500 tax break before the rules get stricter will likely find EVs in short supply.

The bottom line: EV-curious consumers have more choices than ever.

  • There were 47 electric models available for sale in the U.S. at the end of January, up from 33 the prior year.

Editor's note: This story has been corrected to reflect that the Salt Lake City area’s monthly new vehicle registrations in January were up from nearly 3% in January 2022 (not up by 3%).

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