Carmakers' Excessive Supply of Electric Vehicles

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【Summary】The National Association of Motor Auctions (NAMA) has stated that certain car manufacturers are flooding the market with new and nearly new electric vehicles (EVs). However, the overall performance of EVs remains consistent with previous months. The car market is experiencing falling prices, with some exceptions in the small SUV sector. Dealers are adopting a more targeted stock approach in preparation for an expected positive bounce in January.

FutureCar Staff Nov 25, 2023 8:17 AM PT

Carmakers' Excessive Supply of Electric Vehicles

According to the National Association of Motor Auctions (NAMA), some car manufacturers are flooding the market with new and nearly new Electric Vehicles (EVs). The overall performance of BEVs has remained consistent with previous months, although NAMA did not specify which brands were responsible for this trend.

The car market as a whole is experiencing falling prices, but EVs are showing resilience, except for the small SUV sector. Dealers are adjusting their stock approach in anticipation of a positive rebound in January.

NAMA also noted a slight decline in Light Commercial Vehicles (LCV), mainly due to seasonality. Surprisingly, the large van sector has slowed down, which might indicate maturity in the parcel and home delivery industry.

Both the city and small van markets have seen a decline between July and October. Retail demand is down, and consumers are holding onto vehicles for longer periods, seeking better value for money.

Despite the flood of new and nearly new EVs from certain manufacturers, the overall performance of Battery Electric Vehicles (BEVs) remains consistent with previous months.

Auction houses have observed a trend of price realignment, with a slight increase in volume for November. Dealers are starting to adopt a more targeted approach to their stock in preparation for a positive bounce in the new year, according to Paul Hill, NAMA Advisor.