Electric Cars' Unsold Inventory and the Auto Industry's Decline

author: FutureCar Staff    

As the auto industry sees an increase in electric vehicle (EV) inventories on dealer lots, they are faced with numerous challenges. These challenges include addressing concerns about 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 and end-of-life management, the potential end of EVs' free ride on highways without fuel taxes, and the possibility of separate meters for home chargers leading to higher rates for EV charging.

Another issue the automobile industry faces is convincing buyers that it is ethical and socially responsible to purchase an EV. Many of the exotic minerals and metals required for EV batteries are mined in developing countries with limited environmental and labor regulations. There is a lack of transparency regarding the impact of the green movement on these countries, as highlighted in the book "Clean Energy Exploitations" and the documentary film "Planet of the Humans."

Despite these challenges, the auto industry is shifting towards manufacturing EVs to meet government mandates on emissions reduction. However, there is a disconnect between the supply of EVs and the demand from the public. The current profile of EV owners consists of highly educated, highly compensated individuals with multi-car families and low mileage requirements. This profile differs significantly from the majority of potential car buyers who are not as highly educated or compensated. Mandating a transition to EV ownership may face resistance from those who need affordable transportation.

Furthermore, the lack of a used car market for EVs poses a major problem for the auto industry. Currently, about 73% of all car sales in the US are used combustion engine cars, while the EV industry has virtually no used car market. Additionally, the distribution of EV ownership throughout the country is a concern. California accounts for 40% of EVs in America, leaving the other 60% to be spread across the remaining 49 states.

The issue of electricity supply also poses challenges for EV adoption. California, for example, imports more electricity than any other US state, and the other 49 states have limited EV charging infrastructure. The UK is ahead of most countries in protecting its grid with Smart Chargers and Separate Meters for EV charging users. These measures help manage grid stability and ensure that EV charging is taxed at a higher rate.

Overall, the auto industry faces bumpy roads ahead in increasing EV penetration among the general population. Addressing concerns related to EV ownership, expanding the charging infrastructure, and ensuring a reliable electricity supply are crucial for the widespread adoption of electric vehicles.

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.

FutureCar Staff