NEW YORK–The growing volume of electric vehicles being manufactured isn’t being met by a sufficient number of buyers, at least for now.
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 a purchase due to price or charging concerns, reported Axios.
Jonathan Gregory, senior manager of economic and industry insights at Cox Automotive, told Axios it’s a “Field of Dreams” moment for automakers, as they’ve built the cars and now they're waiting for buyers to come.
A Cox survey found that 51% of consumers are now considering either a new or used EV, up from 38% in 2021, the report stated.
33 New Models Coming
“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,” Axios reported. “But sales aren't keeping up with that increased output. 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.”
By comparison, dealers have approximately 54 days' worth of gas-powered vehicles in inventory, down from the standard 70-day supply.
Cars Going Unloved
Citing the Cox data, Axios said Genesis sold only 18 of its nearly $82,000 electrified G80 sedans in the 30 days leading up to June 29, and had 210 in stock nationwide — a 350-day supply, while Audi's Q4 e-tron and Q8 e-tron and the GMC Hummer EV SUV also have bloated inventories well above 100 days.
“All come with hefty price tags that make them ineligible for federal tax credits,” the report stated, adding that Tesla's price-cutting strategy could also be having an effect. For example, the once-hot Ford Mustang Mach-E now has a 117-day supply.
Ford has stated that's the result of ramped-up production in anticipation of stronger third-quarter sales, Axios said.
An Intriguing Factor
There is also an “intriguing” factor at work, according to Axios: Hybrid vehicles have much lower inventory levels, “supporting Toyota's argument that consumers want a stepping stone to fully electric cars.”
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