Why Are North America’s EV Sales Lagging Behind the Rest of the World?
Take a drive through any major European city or a bustling street in China, and you’ll notice something striking: electric vehicles (EVs) are everywhere. In contrast, North America still feels like it’s just dipping its toes into the EV pool. So, what’s holding back EV adoption in the US and Canada, especially when the rest of the world seems to be racing ahead?
Several factors are at play. First, infrastructure. Europe and China have invested heavily in public charging networks, making it easy for drivers to top up their batteries whether they’re at a shopping mall or parked on a city street. In North America, charging stations are still catching up, especially outside of major urban centers. According to the International Energy Agency, Europe had roughly 500,000 public chargers in 2023, while the US had just over 130,000. That’s a big gap.
Then there’s consumer mindset. In places like Norway, government incentives and high fuel taxes have made EVs a no-brainer. Meanwhile, North American buyers face patchy incentives and a car culture that still leans heavily toward trucks and SUVs. Range anxiety is another hurdle—drivers worry about running out of juice on long road trips, and with fewer charging options, that’s a real concern.
How Do Tariffs Impact Automakers Like Volvo?
Let’s talk tariffs. For global automakers, these taxes on imported goods can be a real headache. Volvo, for example, has felt the sting. The company, which is owned by China’s Geely, manufactures some of its EVs in China and ships them worldwide. When countries like the US slap hefty tariffs on Chinese-made vehicles, it hits Volvo’s bottom line hard.
In 2023, the US imposed tariffs of up to 27.5% on Chinese-built cars. For Volvo, that means higher prices for American consumers or slimmer profit margins for the company. Neither option is great. Volvo’s CEO, Jim Rowan, has publicly acknowledged that tariffs are forcing the company to rethink its supply chains and production strategies. They’re not alone—other automakers are scrambling to adapt, too.
What Can North America Learn from Global EV Leaders?
There’s no shortage of lessons to be learned from countries that have successfully accelerated EV adoption. Take Norway, where more than 80% of new car sales in 2023 were electric. The secret sauce? Aggressive government incentives, widespread charging infrastructure, and a clear roadmap for phasing out gasoline vehicles.
China’s approach is different but equally effective. The government has poured billions into battery technology and charging stations, and local automakers have responded with affordable, innovative EVs. The result? China now accounts for over half of the world’s EV sales, according to BloombergNEF.
North America could borrow a page from these playbooks. More consistent federal incentives, investments in charging networks, and clear policy signals would go a long way. Automakers might also consider more affordable models and partnerships with tech companies to improve battery range and charging speeds.
Are North American Consumers Ready for an EV Revolution?
It’s not all doom and gloom. Interest in EVs is growing, especially as gas prices fluctuate and climate concerns become more urgent. According to a 2024 survey by Consumer Reports, nearly 40% of Americans say they’d consider an EV for their next car. That’s up from just 17% five years ago.
Still, there are hurdles. Many buyers are waiting for prices to drop and for charging to become as easy as filling up at the pump. Automakers are responding with more models and better range, but it’s a gradual shift. Real-world stories help, too—just ask the thousands of Uber and Lyft drivers in California who’ve made the switch and are saving hundreds each month on fuel and maintenance.
What’s the Real Outlook for North American EV Growth?
Looking ahead, the EV landscape in North America is set for change, but it won’t happen overnight. Policy shifts, new investments, and changing consumer attitudes are all moving the needle, albeit slowly. Automakers like Volvo are navigating choppy waters, balancing tariffs and supply chain headaches with the promise of a booming EV market.
The big takeaway? Closing the EV gap isn’t about perfection—it’s about smarter adjustments. Start with one change this week, and you’ll likely spot the difference by month’s end. Whether it’s exploring an EV for your next ride or supporting local charging infrastructure, every step counts toward a cleaner, more electrified future.
