Car Pileup: Electric Vehicles Sitting Unsold On Dealer Lots
WRITTEN BY JOANN MULLER ON JUL 11, 2023. POSTED IN LATEST NEWS
WRITTEN BY JOANN MULLER ON JUL 11, 2023. POSTED IN LATEST NEWS
Car Pileup: Electric Vehicles Sitting Unsold On Dealer Lots
The auto industry is beginning to crank out more electric vehicles (EVs) to challenge Tesla, but there’s one big problem: not enough buyers.
Why it matters: The growing mismatch between EV supply and demand is a sign that even though consumers are showing more interest in EVs, they’re still wary about purchasing one because of price or charging concerns. [emphasis, links added]
It’s a “Field of Dreams” moment for automakers making big bets on electrification — they’ve built the cars, and now they’re waiting for buyers to come, says Jonathan Gregory, senior manager of economic and industry insights at Cox Automotive.
Driving the news: Cox Automotive experts highlighted the swelling EV inventories during a recent midyear industry review for journalists and industry stakeholders.
EV sales, which account for about 6.5% of the U.S. auto marketso far this year, are expected to surpass one million units for the first time in 2023, Cox forecasts.
A Cox survey found that 51% of consumers are now considering either a new or used EV, up from 38% in 2021.
Tesla’s rapid expansion, plus new EVs from other brands, are fueling the interest — 33 new models are arriving this year, and more than 50 new or updated models are coming in 2024, Cox estimates.
Yes, but: Sales aren’t keeping up with that increased output.
Details: The nationwide supply of EVs in stock has swelled nearly 350% this year, to more than 92,000 units.
That’s a 92-day supply — roughly three months’ worth of EVs, and nearly twice the industry average.
For comparison, dealers have a relatively low 54 days’ worth of gasoline-powered vehicles in inventory as they rebound from pandemic-related supply chain interruptions.
In normal times, there’s usually a 70-day supply.
Notably, Cox’s inventory data doesn’t include Tesla, which sells direct to consumers.
…snip…
The intrigue: Hybrid vehicles have much lower inventory levels, supporting Toyota’s argument that consumers want a stepping stoneto fully electric cars.
Top photo by Pixabay
Read full post at Axios
VW recently shut down some of their EV production lines
Customer resistance:” Volkswagen cuts EV production as it fails to keep up with market
https://thedriven.io/2023/07/06/customer-resistance-volkswagen-cuts-ev-production-as-it-fails-to-keep-up-with-market/