Posted on 07/12/2023 9:11:54 PM PDT by SeekAndFind
In second quarter 2023, the average inventory for electric vehicles (EVs) topped more than 92,000 units on the ground at dealer lots, according to the 2023 Cox Automotive Mid-Year Review presentation. This is up 342 percent compared to second quarter 2022. During this period, the new “EV days’ supply,” which refers to the average number of days a warehouse holds inventory before selling it, rose 166 percent, to 92 days from 38.5 days. While the pace of EV sales is up, it is “not rising as fast as inventory builds,” said Jonathan Gregory, senior manager, Economic and Industry Insights.
Original equipment manufacturers (OEMs) are facing a “field of dreams moment,” he stated. “They have built inventory, and now they wait for buyers to come. This is one of the hottest topics we’ve had this year.”
Brands like Jaguar, Infiniti, and Lincoln had the highest days of supply, at over 100 days. The lowest numbers were seen among Toyota, Honda, Kia, and Lexus, with each brand having less than 30 days of supply.
Tesla continued to dominate the luxury EV segment with a market share of 25.5 percent, followed by Mercedes at 12.5 percent, BMW at 12.2 percent, and Lexus at 11 percent. Among EVs priced above $50,000, Ford held the biggest share at 22.1 percent, followed by Chevrolet at 12.1 percent.
Unlike other parts of the world, U.S. citizens remain on the sidelines when considering an EV purchase.
According to an April 2023 report by consumer intelligence company JD Power, more Americans are unwilling to buy EVs. In March, 21 percent of new vehicle shoppers said they were “very unlikely” to consider an EV, up from 17.8 percent in January.
During this period, the proportion of people who said they were “very likely” to buy an EV remained flat at around 26 percent.
“Lack of public charging infrastructure and price have been the top two concerns for the past 10 months, along with related issues involving range anxiety, time required to charge, and power outage and grid concerns,” the report said.
While inventory is building up at dealer lots, a study by Cox Automotive found a wide gap between dealers and customers regarding future expectations of EV use.
According to Cox Automotive’s 2023 Path to “EV Adoption: Consumer and Dealer Perspectives” study, even though 53 percent of consumers see EVs as a future and that such vehicles will replace gas engines over time, only 31 percent of dealers held such a view.
“Nearly half (45 percent) of dealers surveyed feel that EVs still need to prove themselves in the marketplace,” said a press release on June 27.
In addition, the study also found that while customer interest in EVs is rapidly rising, sales continue to remain far lower in comparison. The research found that 51 percent of consumers were considering a new or used EV even though electric vehicles are only expected to make up less than 8 percent of total new vehicle sales this year.
Cox Automotive is expecting the sale of new EVs to surpass one million units for the first time in 2023. According to the firm’s Dealer Sentiment Index, the biggest factor which held back EV dealers during the second quarter was the state of the economy. This was followed by interest rates, limited inventory, market conditions, and credit availability for consumers.
While during regular auto maintenance at my Ford dealer, I wandered around to the showroom to inquire about EV sales.
Ambiguous answer from her...less than glowing...I assured the salesperson I would never purchase an EV.
At some point in time, my sentiment will filter back to a decider.
Please do the same.
Outside of the urban environment, not so much.
Dealerships are between a rock and a hard place: Gov’t & car companies pushiing EVs, while the public is soft on driving them.
im waiting for the fire sale
Once hydrogen cell technology is perfected the BEVs will be to transportation what the CFLs were to household lighting.
“Green” cars for blue cities.
aka Libtardmobiles.
Don’t settle for Betamax.
Then explain why Rivian (RIVN) stock shot up from $14.50 per share t6o $26 per share in just a few days. News stories SAY it was from increased production. However, from this posting, production means nothing. People are not buying them. So, are they going to burn the folks who bought Rivian shares so high? Asking for a friend.
I’m going out on a limb here, but every time I hear President Trump making fun of them in one of his speeches, I wonder to myself if Musk would prefer he keep quiet lol. He jokes about investing in a tow truck business, how if you want to drive for more than 45 minutes without running out of juice, etc.
That’s got to have some effect on the sales.
Even if hydrogen is feasible, barely, more $billions in taxpayer/deficit spended would be wasted.
Also, if feasible, hydrogen would have been developed decades ago.
For workability, hydrogen power = fusion power.
So,I guess this is saying it makes sense to buy a somewhat pricey vehicle for short shopping trips. Not to me, it doesn’t.
They do tend to go up in flames, now and then, don’t they? 😆😊
Excellent. We would never purchase an EV either. Good to make car dealers aware of that, early and often. :-)
Oversized electric golf cart fanboyz hardest hit.
But, they are teh fastar 0-60!
Looks like it’s time for the US government to step in and declare all non-EVs will cease to be manufactured and sold in the US by the end of 2024. Or some such nonsense. The scary part is they may just attempt something along those lines, with a slightly longer timeline.
It doesn’t make sense for me, either. But I don’t live in a big crowded city.
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