- Dealers have learned a lot of lessons about EVs this year.
- For the first time, EVs are starting to pile up on dealer lots.
- The increase in new customers has changed dealers’ approach to EVs.
Car dealers had a great year for electric vehicles, with more battery-powered options on sale.
The year started with strong demand for electric vehicles, with most dealers handing over orders at the factory rather than keeping electric vehicles on-site. But by the summer, dealers began to express concerns about long-term demand trends.
One measure of inventory levels shows that electric vehicles started piling up in the second half of this year, and some dealers began refusing to allocate them.
Most dealers are still focused on selling electric vehicles, but as rising interest rates and overall inflation have left consumers strapped for change, the current price range for these vehicles is tied to customers’ current purchases. It warns that it does not match the method.
“I don’t think manufacturers have yet figured out what the right pricing should be, but it’s probably about five grand lower than it is now,” Vince Sheehy, a Washington, D.C.-area dealer, told Business. Ta. Insider this fall.
Dealers told Business Insider this week that they will enter 2023 with a much different view of electric vehicles than they did when they entered this year. Most companies are still keen to sell battery-powered cars, but they hope manufacturers will pay attention to the changes they’re seeing on their own premises.
EV oversupply
As of the end of July, there were almost twice as many EVs on dealer lots as gasoline-powered vehicles. That was good news for shoppers looking for an EV deal, but for dealers it was the first sign that EV production was outstripping demand.
This was a turnaround from the problems EVs have faced over the past few years. Although most manufacturers were not yet producing EVs at scale, the supply of these cars was very limited and most buyers were forced to wait in long reservation lines to buy their cars. Ta.
The longer they wait, the more likely EV buyers will start looking for other options. place multiple orders Just to see which car came first.
Details about the oversupply of EVs on dealer lots:
Dealers have an oversupply of EVs compared to gasoline cars.
EV customers are decreasing and some dealers no longer want EVs.
These dealers love EVs. They just don’t know how to convince shoppers.
Ford’s electric Mustang Mach-Es are piling up on dealer lots as automakers face EV inventory issues.
new customer group
After years of wealthy early adopters who needed little or no hand in the EV buying process, dealers began encountering new electric car buyers in 2023.
The profile of the average EV buyer has changed dramatically as the affluent buyer class has depleted and waves of macroeconomic change have impacted buyer habits.
“People are no longer evaluating EVs as, ‘I’m looking to buy an EV, but which one should I buy?'” I would buy it,” Sheehy said.
Details about new EV customers:
The EV plateau is here. That’s bad news for companies like Ford and Tesla.
The auto industry overestimated EV demand this year. Companies are now scrambling.
It is becoming increasingly difficult for dealers to sell EVs. That bodes badly for the industry.
50 new EVs are coming to the US soon. It’s unclear whether there are any buyers.
Do you work at a car dealership? Have you had an interesting experience recently? Contact us at transportation@businessinsider.com.
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