Electric Car Sales Slump Raises Concerns for Auto Industry

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【Summary】The auto industry faces challenges with increasing inventories of electric vehicles (EVs) on dealer lots. Concerns about driving range, reliability, price, charging infrastructure, battery lifespan, carbon emissions, and environmental impact deter potential buyers. The ethical implications of mining for battery materials in developing countries also raise concerns. Additionally, the lack of a resale market for EVs and limited EV charging infrastructure in many states pose obstacles.

FutureCar Staff Aug 24, 2023 9:42 AM PT

Electric Car Sales Slump Raises Concerns for Auto Industry

With the increasing inventories of electric vehicles (EVs) on dealer lots, the auto industry is facing numerous challenges in finding buyers who have concerns about various aspects of EVs. These concerns include 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 to stabilize the electrical grid.

Another problem for the automobile industry is convincing buyers that it is ethical, moral, and socially responsible to purchase an EV. This is because the exotic minerals and metals required for EV batteries are often mined in developing countries with limited environmental and labor regulations. The lack of transparency in the green movement's impact on these countries is discussed in the book "Clean Energy Exploitations" and illustrated in a 2-minute clip from the documentary film "Planet of the Humans."

As government mandates push automobile manufacturers to reduce emissions, they are focusing on manufacturing more EVs in the coming years. This means there will likely be fewer hybrids as manufacturers aim to eliminate gasoline engines to meet emission targets. However, while manufacturers are increasing EV supply, there is not enough demand from the public. Current EV owners tend to be highly educated, highly compensated, multi-car families with low mileage requirements for their second car. This profile differs from most potential car buyers who may not have the same education or income levels and may need affordable transportation.

In America, the majority of car sales are used combustion engine cars, with only a small percentage being new or used EVs. The lack of a resale market for EVs, combined with charging challenges and potential battery replacements, may pose a major problem for the auto industry. Additionally, the distribution of EV ownership throughout the country is skewed, with California accounting for 40% of EVs in America. Other states have limited EV charging infrastructure and may even export electricity to California.

In the UK, the demand for electricity to support EV growth has led to the implementation of Smart Chargers and Separate Meters for EV charging users. Smart chargers have preset limitations on their functioning hours, and authorities can impose randomized delays to prevent grid spikes. The UK Electric Vehicles (Smart Charge Points) Regulations 2021 require all home-installed EV chargers to be separately metered and connected to the Smart meter data communications network. This legislation allows for the charging and taxation of EV electricity at a higher rate and enables the rationing of electricity for EV charging.

With the increasing inventories of EVs on dealer lots and the various challenges mentioned, the penetration of EVs into the lifestyles of the common population may face obstacles.

Ronald Stein is an engineer and senior policy advisor on energy literacy for CFACT. He is also the co-author of the book "Clean Energy Exploitations," which was nominated for a Pulitzer Prize.

This article originally appeared at Heartland.