Unsold electric cars are piling up on dealer lots as the auto industry cranks out more electric vehicles (EVs) than there are buyers in an attempt to compete with Tesla. Luxury brands in particular are struggling with high inventories of EVs that no one wants to buy.
The growing discrepancy between electric car supply and demand suggests that while consumers may be showing more interest in EVs, they are still concerned about buying one due to their price or charging concerns, according to a report by Axios.
A Ford Mustang Mach-E compact sports utility vehicle (SUV) during the 2022 New York International Auto Show (NYIAS) in New York, U.S., on Thursday, April 14, 2022. The NYIAS returns after being cancelled for two years due to the Covid-19 pandemic. Photographer: Michael Nagle/Bloomberg
Jonathan Gregory, senior manager of economic and industry insights at Cox Automotive, likened the situation to the 1989 film, Field of Dreams, which coined the famous phrase, “If you build it, he will come.” In the car world, companies have built their electric vehicles, and now they are waiting for customers to come, Gregory said.
A survey conducted by Cox Automotive found that 51 percent of consumers are now considering either a new or used EV, which is up from 38 percent in 2021.
Workers assembly components of a Rivian R1T electric vehicle (EV) pickup truck at the company’s manufacturing facility in Normal, Illinois, US., on Monday, April 11, 2022. Rivian Automotive Inc. produced 2,553 vehicles in the first quarter as the maker of plug-in trucks contended with a snarled supply chain and pandemic challenges. Photographer: Jamie Kelter Davis/Bloomberg
Despite interest, sales aren’t keeping up with increased output, as the nationwide supply of EVs in stock has swelled nearly 350 percent this year, to more than 92,000 units – which translates into a 92-day supply, Axios reported. This data does not include Tesla, which sells directly to customers.
Meanwhile, dealers have a slim 54 days’ worth of gasoline-powered vehicles in inventory. Normally, there is a 70-day supply.
As for luxury brands, they appear to be struggling, as taking a closer look at them reveals much higher EV inventories than others. The Korean luxury brand Genesis, for example, sold only 18 of its nearly $82,000 G80 EVs in the 30 days leading up to June 29, and had 210 in stock nationwide, which comes to a 350-day supply, according to Cox Automotive’s research.
Other luxury brands — like Audi’s Q4 e-tron and Q8 e-tron and the GMC Hummer EV SUV — have substantial inventories well above 100 days. To add insult to the injury of a luxury EV’s high price tag, these vehicles are typically not eligible for federal tax credits.
You can follow Alana Mastrangelo on Facebook and Twitter at @ARmastrangelo, and on Instagram.
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