According to the 2023 Cox Automotive Mid-Year Review, dealer lots had more than 92,000 EVs in second quarter 2023. This represents an increase of 342% when compared to the same time period in 2022. The new “EV days’ supply,” which refers to the average number of days a warehouse holds inventory before selling it, increased by 166 percent during this time period, going from 38.5 days to 92 days. Jonathan Gregory, senior manager of Economic and Industry Insights, stated that even though the rate of EV sales is increasing, it is “not rising as fast as inventory builds.”
Today, electric vehicles account for roughly 6.5% of all new car sales in the US. Nevertheless, this figure is on the rise, and it is anticipated that total sales of electric cars will, for the very first time, surpass the million-unit threshold in the year 2023.
Even though there has been a rise in the number of people using electric vehicles, manufacturers are discovering that they are able to produce EVs significantly more quickly than they can sell them. The result is a glut of electric vehicles at dealerships and factories. To be more precise, the industry has enough electric vehicles to last for about 92 days. That’s a lot, nearly three times the quantity on hand this time last year. And when compared to the current average inventory of ICE-powered vehicles (54 days), it’s nearly double. It’s also important to remember that there were only about 70 days’ worth of vehicles on hand before the pandemic hit.
A Disconnect Between Dealer and Buyer EV Expectations
In spite of the fact that inventory is increasing at dealer lots, a study conducted by Cox Automotive discovered a large gap between dealers and customers regarding future expectations of EV utilization.
Based on “The 2023 Path to EV Adoption: Consumer and Dealer Perspectives” study, even the fact that 53% of customers believe that electric vehicles (EVs) have a future and that such vehicles will eventually replace gas engines, only 31% of dealers hold such a view.
As stated in a press release on June 27, “almost half (45%) of dealers surveyed feel that EVs still need to prove themselves in the marketplace.”
Lastly, the study also found that despite the increasing interest in EVs among consumers, sales have been relatively low. While only about 8% of all new vehicles sold this year are expected to be EVs, the research found that 51% of consumers were seriously considering buying one.
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