Electric Cars' Unsold Inventory

author: FutureCar Staff    

The auto industry is facing numerous challenges as it tries to increase sales of electric vehicles (EVs). Potential buyers have 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, end-of-life management, and the possibility of new costs such as the Vehicle Mileage Tax and separate meters for home chargers. These concerns make it difficult for the industry to find buyers for EVs.

Another problem for the industry is convincing buyers that buying an EV is ethical and socially responsible. Many of the minerals and metals required for EV batteries are mined in developing countries with limited environmental and labor regulations. This lack of transparency in the supply chain raises concerns about the impact of the green movement on these countries.

Despite these challenges, government mandates are pushing automobile manufacturers to focus on EV production to reduce emissions. This means fewer hybrid vehicles will be produced in the future. However, there is currently a lack of demand for EVs from the public. The current ownership profile of EVs shows that they are primarily owned by highly educated, highly compensated, multi-car families with low mileage requirements for their second car. This profile is not representative of most potential car buyers who are not as highly educated or compensated. Mandating a switch to EVs and imposing austerity measures may face resistance from those who need affordable transportation.

Another obstacle for the auto industry is the lack of a used car market for EVs. Currently, about 73% of car sales in the US are used combustion engine cars, and there is virtually no resale market for EVs. This poses a major problem for the industry, as potential buyers may not be willing to invest in a used EV that may require an expensive battery replacement.

The distribution of EV ownership throughout the US is also a concern. California accounts for 40% of EVs in the country, while the other 49 states have a much lower percentage. Additionally, most states do not have a robust EV charging infrastructure, and some may even be exporting electricity to California. This raises questions about the ability of the electricity supply to keep up with the growing demand for EVs.

The UK is ahead of most countries in protecting its grid with Smart Chargers and separate meters for EV charging. New regulations require home and workplace chargers to be "smart" and connected to the internet. They also limit charging during certain hours and allow authorities to impose delays to prevent grid spikes. Additionally, all home-installed EV chargers in the UK are required to be separately metered, potentially leading to higher charges and taxes for EV charging. The technology also allows the government to ration electricity for EV charging and drain EV batteries into the grid if needed.

With these challenges and obstacles, the road to widespread EV adoption among the general population may be a bumpy one.

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