Electric Car Sales Decline Raises Concerns for Auto Sector

author: FutureCar Staff    

The auto industry is facing numerous challenges as electric vehicle (EV) inventories increase on dealer lots. Potential buyers have serious concerns about various aspects of EVs, including driving range, vehicle reliability, price, availability of electricity for charging infrastructure, charging time, battery cost and lifespan, environmental impact, carbon emissions reduction, lithium battery fires, battery recycling, end-of-life management, the potential end of EVs' free usage of highways without fuel taxes, and the possibility of higher charging rates for home chargers.

Another problem for the industry is convincing buyers that it is ethical and socially responsible to purchase EVs, given that the exotic minerals and metals used in battery production are often mined in developing countries with limited environmental and labor regulations.

While automobile manufacturers are transitioning to EV production to meet emissions reduction mandates, there is currently a lack of demand for EVs from the public. The current profile of EV owners consists of highly educated, highly compensated individuals from multi-car families with low mileage requirements for their second car. This profile is not representative of most potential car buyers, who may not have the same education or income levels. Mandating a switch to EV ownership and imposing austerity measures may face resistance from those who need affordable transportation.

Additionally, the lack of a used car market for EVs is a major problem for the industry. Historically, the majority of car sales in the U.S. are used combustion engine cars, with only a small percentage being new. The EV industry has yet to establish a significant used car market, and potential buyers may be hesitant to purchase a used EV that may require an expensive battery replacement.

The distribution of EV ownership throughout the U.S. is also a concern, as California accounts for 40% of all EVs in the country. Other states have limited EV charging infrastructure, and some may even be exporting their electricity to California. This imbalance in EV distribution, combined with the growing demand for electricity, has led the UK to implement smart chargers and separate meters for EV charging to protect its grid.

In the UK, new home and workplace chargers must now be "smart" chargers connected to the internet and have preset limitations on their functioning hours. Authorities can also impose randomized delays on chargers to prevent grid spikes. Additionally, all home-installed EV chargers in the UK are required to be separately metered, potentially resulting in higher charging rates and taxation for EV owners. The technology also allows for rationing of electricity for EV charging and the possibility of draining EV batteries into the grid if needed.

As EV inventories continue to rise, there are challenges ahead for the widespread adoption of EVs among the general population.

Ronald Stein, an engineer and senior policy advisor on energy literacy for CFACT, highlights these issues in his article and co-authored the book "Clean Energy Exploitations," which sheds light on the environmental and human rights abuses associated with clean energy production.

FutureCar Staff