Car dealers in the United States have had an average weekly inventory of 90,000 EVs in this year’s second quarter, amounting to a 342 percent increase over the same period last year, according to Cox Automotive, quoted by Wards Auto.
At first glance, that’s pretty impressive, but as analysts point out, the reality is that actual purchases fail to keep up with dealers’ ability to fill their lots with all-electric vehicles that end up collecting dust for about three months before being sold.
“The jury is out on what will happen to all that inventory,” Charlie Chesbrough, Cox Automotive’s senior economist, told a media gathering in metro Detroit. “EV sales are rising but not to the same extent of inventory.”
The increase in EV stocks is partly due to the expansion of all-electric lineups from manufacturers worldwide, with about 30 new battery-powered cars expected to hit the market this year and roughly 50 new models next year. However, data shows that purchases “are not keeping up with availability,” Cox Automotive’s chief economist Jonathan Smoke said.
A survey of 1,024 consumers and 152 dealers conducted by the company that solutions for car sellers revealed that there’s a gap between consumers’ EV enthusiasm and actual purchases. Additionally, the results of the survey indicate a lack of EV readiness among US automotive dealers regarding sales and service.
“Education for both consumers and dealers remains a critical factor in driving widespread confidence and adoption of electric vehicles,” said Kayla Reynolds, a Cox Automotive researcher. “For dealers specifically, preparation is paramount, and our findings emphasize the urgency of equipping dealers with EV sales and servicing capabilities.”
Affordability is the main barrier for people considering buying an EV, with 43 percent of those surveyed noting that battery-powered cars cost more than internal combustion engine vehicles.
However, worries about the limited availability of charging stations went down from 40 percent in 2021 to 32 percent this year. According to Pamposh Zutshi, senior director-product management at charging provider WiTricity, charging concerns drop once people get their EV delivered:
“Our research indicates EV owners love their vehicles,” he said at a Society of Automotive Analysts webinar. “Those who made the leap of faith in buying an EV are 50% less likely to worry about range. They are also less likely to worry about how long charging takes.”
Cox Automotive estimates that EVs will account for about 8 percent of all the new cars sold in the United States this year, which the firm says will total 15 million units. In other words, roughly 1.2 million new all-electric cars could be sold across the country until the end of the year.
At the same time, estimates from the International Energy Agency say that there will be over 14 million EVs sold globally this year.
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