CConsumers spend nearly $400 billion on electric vehicles Globally in 2022, U.S. expected to add 1 million new electric vehicles this year. Car companies have committed to investing a total of $616 billion in electric vehicles from 2023 to 2027, according to consultancy AlixPartners.
Yet electric vehicles are piling up at dealerships.
According to Cox Automotive, electric vehicle and internal combustion engine (ICE) inventories at the beginning of the year were approximately 52 days’ supply. Days of supply is a measure of how many vehicles a dealer has in stock. With a 52-day supply, if the automaker stopped making cars today, dealers would be able to continue selling cars for about that many days before running out. The number of days of supply for electric vehicles has surged since January, while that of diesel-powered vehicles has hovered between 52 and 58 days. The supply of electric vehicles at the beginning of October was 97 days, down from the inventory peak of about 111 days in early July.
It will take roughly twice as long to sell electric vehicles in the United States in August 2023 as it did in January the previous year. Meanwhile, sales of gas-powered vehicles remain strong. Slightly more than half of consumers do say electric vehicles are the future and will eventually replace internal combustion engines, but less than a third of dealers hold that view.
EV leader Tesla has slashed prices, some EV startups such as Lucid have reported disappointing sales, and companies such as Ford Motor Co. have ramped up production of hybrid vehicles as EV demand levels off. Industry insiders cite a number of factors: high pricing, concerns about fees and restrictions on subsidies.
“Even though most charging happens at home, there are still concerns about public charging infrastructure,” said Jeff Aiosa, a Mercedes-Benz owner in New London, Connecticut. “People Still worried about those long trips.”
Many, including Iosa, say the shift to electric vehicles is inevitable in the long term.
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