Revised electric vehicle incentives are pushing buyers to models made in North America, boosting EVs from Tesla, Chevrolet and Volkswagen to the detriment of Korean imports from Hyundai and Kia, Experian data for new-vehicle registrations shows.
The top eight EVs in January were all made in North America, including three models from Tesla, two from Ford and the newly surging VW ID4 crossover that began production in Chattanooga last year.
Hyundai's imported Ioniq 5 crossover fell to ninth place from seventh place for full-year 2022. Kia's Korean-made EV6 was no longer among the top 10 EVs in January, after coming in eighth for 2022, according to Experian.
The shift in the EV landscape comes after passage of the Inflation Reduction Act last year, which changed eligibility for the U.S. federal tax credit of up to $7,500. Starting in August 2022, the incentive for the first time required that EVs be assembled in North America.
New registrations for all EVs in January captured 7.1 percent of the U.S. light-vehicle market at 87,708 units, compared with 4.3 percent a year earlier at 50,338. New registrations for all light vehicles regardless of fuel type stood at 1.24 million, Experian data showed.