On average, US car dealers typically record 90,000 electric vehicles per week in their inventories in Q2 2023. That figure indicates a whopping year-on-year growth of 342%, Wards Auto reports citing Cox Automotive.
That high level of EV inventory may be remarkable for some. However, industry analysts explain that sales have lagged behind production, ending at dealers’ lots. The units apparently stay at dealerships for approximately three months before getting sold.
“The jury is out on what will happen to all that inventory. EV sales are rising but not to the same extent of inventory.”
Charlie Chesbrough, Cox Automotive’s Senior Economist, told a media conference in metro Detroit
What drives EV inventories to increase?
The increasing number of EV inventories is somehow affected by the growing portfolio of global automakers, with plans to launch around 30 new models this year and about 50 models the following year.
Cox Automotive Jonathan Smoke expressed his concern, saying that actual purchases “are not keeping up with availability.”
Interestingly, the company’s recent survey of 1,024 buyers and 152 dealers found a gap between EV enthusiasm and real purchases among customers. The results further revealed a lack of EV preparedness among US auto dealers concerning sales and service.
“Education for both consumers and dealers remains a critical factor in driving widespread confidence and adoption of electric vehicles. For dealers specifically, preparation is paramount, and our findings emphasize the urgency of equipping dealers with EV sales and servicing capabilities.”
Kayla Reynolds, a Cox Automotive researcher
Apart from that, potential customers are found to be mostly concerned about EVs affordability. The survey revealed that 43% of the respondents find BEV prices more expensive than their ICE counterparts.
In a significant turn of events, charging infrastructure-related concerns dropped 32% this year from 40% in 2021. WiTricity’s Senior Director-Product Management Pamposh Zutshi stated that charging worries decline among EV owners once they get their units.
“Our research indicates EV owners love their vehicles. 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.”
Pamposh Zutshi stated at a Society of Automotive Analysts webinar
See Also:
- US sales for Hyundai Ioniq 5 jumped 56% in January 2023
- Chinese automakers allegedly abandon thousands of EVs to manipulate sales chart
- VinFast launches its Special Aftersales Policy for its global customers
- Hyundai BEV sales grew 78% YoY in May 2023 in the US
- US: New vehicle sales to soar 15.6% in May
Cox Automotive expects EVs to contribute approximately 8% of all new car sales in the US this year, estimating it will hit 15 million units. Therefore, about 1.2 million new BEVs can potentially sell in the country until the end of 2023.
Meanwhile, International Energy Agency forecasts EVs to reach more than 14 million sales worldwide this year.
All that said, the widespread adoption of EVs is continuously progressing, with more automakers joining the shift.
