Bank of America analysts forecast a slower adoption of electric vehicles (EVs) than previously anticipated. EVs and hybrids are projected to make up 60% of new car offerings by 2028, down from 64% last year. The resurgence of internal combustion engine (ICE) vehicles is notable, with offerings nearly matching EVs over the next four years. Hybrids are gaining traction, appealing to those seeking efficiency without a full EV commitment.
EV penetration is expected to reach 25% by 2027, a delay from earlier forecasts. US EV sales are projected to hit 1.8 million in 2024 and rise to 4.5 million by 2028. Tesla is predicted to maintain its EV lead, but incumbent automakers like Stellantis, GM, Toyota, and Honda are expected to increase their market share significantly by 2027.
