Thanks in large part to President Biden’s efforts to move production of electric vehicles and their components to North America, EV incentives have been driving up sales of all-electric vehicles that are built domestically. Among the list of EVs that have seen an increase in the number of registrations in January 2023 are the Chevy Bolt EUV and Chevy Bolt EV.
According to a report by Automotive News, eight of the top 10 EV registrations were vehicles manufactured primary in North America, including three models from Tesla, two models from Ford, the new ID.4 from Volkswagen, and the aforementioned Chevy Bolts.
Notably, the Chevy Bolt EUV ranked third with 4,928 registrations, while the Chevy Bolt EV ranked eighth with 2,526 registrations. As a reminder, the Bolt EV is the most affordable all-electric vehicle in the U.S. market with a starting MSRP of $27,495.
This rise in registrations at the expense of imported EVs like the Hyundai Ioniq 5 and Kia EV6 comes as a direct result of Inflation Reduction Act and the corresponding Federal EV incentives. For those who may be unaware, here’s a quick breakdown on how manufactures can tap into this $7,500 Federal EV tax credit:
- Minerals – Beginning in 2023, 40 percent or more of the critical minerals used in batteries must be manufactured or assembled in North America. This percentage rises by 10 percent every following year.
- Components – Beginning in 2023, 50 percent or more of the value of the EVs battery components must be manufactured or assembled in North America. This percentage rises by 10 percent every following year.
In order to qualify for the full credit, electric vehicles must meet both requirements. If only one of the requirements is met, the EV will only be eligible half of the $7,500 credit.
“The sales trend for green vehicles, starting with hybrids 20 years ago and more recently for EVs, has consistently been tied to government incentives,” iSeeCars executive analyst Karl Brauer was quoted as saying. “When strong incentives are attached to a given vehicle, that vehicle will see improved sales. The reverse is also true. When government incentives are reduced or eliminated, the target vehicles will see a notable decline in volume.”