The movement to an electric vehicle world is becoming more difficult for most automakers. Some are showing extreme skepticism in the modern market.
Did most of the largest automakers put the proverbial cart before the horse? Many of the most popular car brands have been bullish on EVs but are now pulling back and rethinking their strategies. In reality, most should have seen this coming. The warning signs were there, and the public has spoken pretty loudly on the subject.
Recently, many of the top automotive brands have begun to realize the difficulty in selling EVs and PHEVs in a market filled with gas-powered vehicles. Let’s explore.
Dealers have too much EV inventory
Most automakers offer a wide variety of vehicles for consumers to drive. Only a few brands, Tesla being the largest of them, offer a full EV lineup. With prices soaring, interest rates on the rise, and a nearly $20,000 difference between EV and gas vehicle prices, it’s easy to see why dealers have too many EVs on the lot. In fact, inventory is so stagnant that dealers are offering discounts, rebates, and special incentives to push these electric models of the lot, and still, it’s difficult for dealers to get people in them.
Projected production figures are being deflated
GM, Ford, and Mercedes-Benz have all issued statements that they will slow the production of electric vehicles over the next few years to better understand the demand and inventory needs to support the movement toward electrification. Unfortunately, these brands, along with many others, have multi-billion dollar investments in the EV sector. So far, these automakers aren’t seeing a return on their investment, making it extremely difficult to support the growing plans to expand EV lineups for the future. This could potentially slow the movement away from gas and diesel-powered vehicles.
Why are EV sales sluggish?
Electric vehicles are new, and moving away from the convenience of gas-powered cars, trucks, and SUVs and into something packed with tech that drives using only electricity could be a difficult transition for many consumers.
Here are a few reasons why these sales are sluggish:
The economy
Every time something goes wrong, the economy takes the blame. In this case, it might be true. New vehicles have never been more expensive than they are right now, which turns many shoppers away. The average price of a gas-powered vehicle is $48,000, and EVs reach over $60,000 on average. Many drivers can’t afford this price and will continue to drive their older vehicle or buy a used model rather than shelling out the money for a new vehicle. Toss in the higher interest rates, and you’ve got a recipe for sales disaster.
We know more than ever about EVs
Automakers can quote a 300-mile driving range, but we’ve learned that actually means the vehicle can drive for about 240 miles before it needs to be recharged. When you compare a full electric charge to gas-powered vehicles, the value isn’t there. You’ll spend more time charging than you would refueling a gas-powered vehicle. For most people, time matters, and they don’t want to waste it waiting for EV batteries to charge.
In addition to the charging problem, electric vehicles haven’t proven themselves to be nearly as capable as gas and diesel-powered models. A gas truck can tow a heavy load for much longer than an electric truck. Even if the gas truck runs out of fuel, it only takes a few minutes to refill compared to nearly an hour or more for the electric pickup.
EV battery replacement costs
Although automakers offer impressive warranties for EV batteries, most drivers are shocked by the high price of replacing the batteries. Unlike gas vehicles, which won’t likely require the engine block to be replaced, an electric vehicle requires a new battery pack at some point in time. These batteries have a limited life span, regardless of how well-maintained they are. If you properly care for an internal combustion engine, it should last a long time, some as much as twenty years, which is much longer than any EV battery is expected to last.
The Unknown makes sales difficult
Imagine you’re a car salesperson, and your job is to sell electric vehicles. How do you get over the hurdle of consumers knowing very little about these vehicles, not trusting them, and not being comfortable with them? Once you get past these hurdles, you have to justify the higher prices, short driving distances, and potential battery replacement costs. No wonder EV sales are sluggish.
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