The auto industry’s push into electric vehicles has gained traction this year with sales of these models growing at a faster clip than the broader U.S. car business.
While still a sliver of the overall market, sales of plug-in vehicles more than doubled in the first half of 2021 compared with last year, when the pandemic sapped sales. That far outpaced the 29% rise for total vehicle sales, according to research firm Wards Intelligence.
The biggest factor driving the gains was Tesla Inc.’s TSLA -0.92% continued dominance in electrics. Tesla’s U.S. sales rose 78% through June this year, according to an estimate from research firm Motor Intelligence. The increase was helped by Tesla’s Model Y crossover SUV, which has quickly become the company’s top seller since being introduced last year. Tesla is scheduled to report second-quarter financial results Monday.
Auto companies collectively are spending $330 billion over the next five years to bring more plug-in models to showrooms, according to consulting firm AlixPartners LLP.
Now, the big question looming over the car business is whether consumers are ready to buy them.
Longer driving ranges and a wider variety of body styles and price points are helping garner interest in plug-in cars from more car shoppers, dealers and analysts say. But hurdles remain, including higher sticker prices and a deficit of places to charge them.