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Car Pileup: Electric Vehicles Sitting Unsold On Dealer Lots

by Joann Muller
July 11, 2023, 10:50 AM
in News and Opinion
Reading Time: 2 mins read
A A
7

car dealershipThe 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 market so 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 stone to fully electric cars.

Top photo by Pixabay

Read full post at Axios

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Comments 7

  1. Drewski says:
    2 years ago

    Don’t you guys ever get tired of the biased drivel being fed to you on the CLIMATE DISPATCH TABLOID?

    “According to the registration data from Experian (via Automotive News), the total number of BEV registrations during the first three months of 2023 amounted to 257,507, which is 63 percent more than a year ago and about 7 percent of the total market (up from 4.6 percent in Q1 2022).

    For reference, the total number of light-duty vehicle registration amounted to 3.69 million (up 8.4 percent year-over-year).”

    Reply
    • Dave O says:
      2 years ago

      Using your numbers:
      EV market penetration is 7% of total
      Total vehicle sales is up by 8.4%
      There is a net increase in ICE (internal combustion engine) vehicles on road in 2023. At this rate the ICE vehicles will never be replaced, since EV sales are not even keeping up with the year over year increase in the # of vehicles.

      Reply
      • Drewski says:
        2 years ago

        Comprehension much?
        “2023 amounted to 257,507, which is 63 percent more than a year ago and about 7 percent of the total market (up from 4.6 percent in Q1 2022).”

        4.6% of total market in 2022 – 7% in 2023

        Reply
    • Sonnyhill says:
      2 years ago

      They’re going to run out of suckers before CCD runs out of climate sceptics.

      Reply
  2. Joseph Repas says:
    2 years ago

    If they truly wanted to make EV’s viable for the reasons they state then they would have upgraded the electrical grid first then pushed for EV’s but they are only concerned with killing us with survivors being their slaves.

    Reply
  3. Sonnyhill says:
    2 years ago

    If the socialists are intent on destroying capitalism, why not bankrupt the Big Three automakers? The anarchists are well on their way to wrecking our power grid, where’s the juice for EV’s going to come from? I can’t believe what I’m seeing.

    Reply
  4. SPURWING PLOVER says:
    2 years ago

    Were not willing to switch to EV’s nor do we w ant to be forced to ride Bikes to work we don’t want Big Brother Period and we don’t need the United Nations either

    Reply

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