Electric Vehicle Market Growth and Financing Insights

This report examines the growth of the electric vehicle (EV) market, highlighting significant trends and insights into consumer behavior and financing. In 2023, EV sales have increased, capturing over 8% of new vehicle registrations in the second quarter. The study, conducted by TransUnion, analyzes approximately 33 million new light vehicle registrations in the US from 2019 to 2023, focusing on the relationship between EV buyers and credit, as well as the financing of EVs. It discusses the competitive landscape, indicating that auto lenders must adapt to the evolving market by understanding the unique needs of EV consumers. Key findings include the necessity for lenders to engage with consumers earlier in the sales process and the importance of partnerships with dealerships for financing. The report also notes that mainstream EV owners now have credit profiles similar to luxury vehicle owners, and younger consumers are increasingly purchasing EVs, suggesting a shift in market demographics.