Dealers Finally Have EV Inventory But Now Lack Buyers

We’ve been hearing about the rise of electric vehicles for years, but while they are growing rapidly in number, there’s still a disconnect between an auto industry hell-bent on electrification and the desires of the people they rely on to buy new cars. Axios recently highlighted the issue and found that dealers have EV inventory sitting on their lots for extended periods, suggesting that supply is significantly outpacing demand.

Part of the issue with some EV models is their sky-high price tags, and the most expensive models aren’t eligible for government tax credits. Cox Automotive surveyed buyers, finding that 51 percent are considering a new or USED EV, but that hasn’t dented dealers’ supply, as electric models have an average of 92 days of supply across the country. That’s twice the industry average and the opposite of gas vehicle supply, which is somewhat low at 54 days.

Though EV sales seem to be dragging, hybrids and plug-in hybrids are hot commodities. Some models, such as the Toyota RAV4 Prime, have extremely low inventory levels, while hybrids have an average of 44 days of supply. As Axios pointed out, the numbers indicate that Toyota’s multi-pronged approach, which incorporates hybrids and other technologies to reduce emissions, rather than a full shift to electric vehicles is the way to go. That said, EV prices are becoming more reasonable, and analysts expect them to reach price parity with gas vehicles by 2025, so these numbers could look very different in a year or two. 

from TheTruthAboutCars https://www.thetruthaboutcars.com/cars/news-blog/dealers-finally-have-ev-inventory-but-now-lack-buyers-44501872?utm_medium=auto&utm_source=rss&utm_campaign=all_full