Green vehicles will hold a 4.4 percent market share of the automotive industry in 2018, up from 3.2 percent in 2017, according to car information and shopping platform Edmunds.
Green vehicles include electric vehicles (EVs), plug-in vehicles, and traditional hybrids.
Plug-in sales will double in 2018 and will outpace traditional hybrid sales by 2020, Edmunds forecasts.
“Even if Tesla doesn’t meet its full production commitments for the Model 3 until midsummer, 2018 will still be a hallmark year for green vehicles,” Jessica Caldwell, Edmunds executive director of industry analysis, said. “The price of batteries is coming down, EV range is rising, and shoppers will have more choices than ever. However, the lower end of the EV market will feel pressure once federal tax credits start to wane toward the latter half of the year, which will give the first indication of how ready the segment is to stand on its own.”
An increase in green vehicle sales is the precursor to autonomous vehicles auto parts in the works for 2019 and 2020, Edmunds said.
In 2018, the overall automotive market is forecasted to reach 16.8 million new vehicles in the United States, the second consecutive year of declines. This year, 17.2 million new vehicles were sold.