Despite an upswing in consumer interest towards electric vehicles (EVs), a significant surplus of unsold cars is emerging on dealer lots, even as auto industry manufacturers intensify their efforts to rival Tesla.
Luxury brands are experiencing a notable slump, having amassed an excess of EVs that are failing to attract buyers.
A growing divide between EV supply and demand is becoming evident.
Increased curiosity in EVs does not necessarily convert into sales.
Consumers remain hesitant to invest due to price constraints and concerns over charging infrastructure, as per a recent Axios report.
Jonathan Gregory, the senior manager of economic and industry insights at Cox Automotive, aptly described the scenario using the analogy of the 1989 film “Field of Dreams”, with the memorable line, “If you build it, he will come.”
Automobile companies have rolled out their EVs and are now waiting, and waiting and waiting for customers to show up, Gregory said.
Cox Automotive’s survey indicated a rise in consumer consideration towards EVs, with 51 percent of participants showing interest in either a new or used EV, an increase from 38 percent in 2021.
However, heightened consumer interest is not translating into equivalent sales numbers.
The national inventory of EVs has seen a staggering 350 percent increase this year, escalating to over 92,000 units – a 92-day supply.
This data does not take Tesla into account, given that the company sells directly to consumers.
Conversely, traditional gasoline-powered vehicles present a leaner 54-day supply in inventory, a marked dip from the usual 70-day supply.
RELATED: Huge Drawback of Electric Trucks Revealed as Ford Lightning Loses 25% of Range with Full Payload
Luxury brands are encountering particular hurdles.
The Korean luxury brand Genesis, for instance, managed to sell a mere 18 of its roughly $82,000 G80 EVs in the month leading to June 29, leaving a massive 210 units still in stock across the nation – equivalent to a staggering 350-day supply, as per Cox Automotive’s research.
Several luxury brands such as Audi’s Q4 e-tron and Q8 e-tron, and the GMC Hummer EV SUV, are grappling with inventories well above the standard 100-day supply.
Adding to the challenges of their higher price tags, these luxury EVs typically do not qualify for federal tax credits.
Bottom line, the government and car manufacturers are pushing electric vehicles no one wants.
No comments:
Post a Comment