While many automakers expected the Inflation Reduction Act’s tax credits for electric vehicles (EVs) to drive a surge in demand, a more incremental shift occurred. Here are five charts that explain why EV sales, along with the broader auto market, have hit several potholes, and why they may face some speed bumps on the road ahead.

It’s gotten harder to buy a new vehicle

Higher interest rates and vehicle costs have made it more challenging to purchase a new car. The number of median weeks of income needed to purchase an average new vehicle in March 2024 was 12.1% higher than its pre-pandemic number in March 2019, per the Cox Automotive/Moody’s Analytics Vehicle Affordability Index.