EVs Piling Up, Buyers Still Interested, Experts Claim

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【Summary】Experts say that although electric vehicles (EVs) are piling up on dealer lots for longer periods, it doesn't mean that consumer interest is waning. The high "days' supply" numbers are influenced by factors such as the pandemic affecting supply metrics and the transition to EVs happening at different rates across different markets. While some regions have seen steady growth in EV sales, others have experienced slower demand.

FutureCar Staff Aug 13, 2023 9:16 AM PT

EVs Piling Up, Buyers Still Interested, Experts Claim

The transition to electric vehicles may not be smooth and will not happen evenly across the country. However, high "days' supply" numbers do not necessarily indicate a loss of consumer interest.

Recent reports have shown that electric vehicles are sitting on dealer lots for more than 100 days, suggesting a cooling demand. However, the situation is not as straightforward as it seems. In 2023, retailers sold 8.6 percent of all vehicles as electric, but they only accounted for 6.7 percent of available inventory. This data indicates that the demand for EVs is not actually slowing, according to Tyson Jominy, vice president of data and analytics at JD Power.

The unusual supply metrics can be attributed to the effects of the pandemic and the ability of automakers to produce vehicles at their usual rates. Jim Cain, a GM spokesperson, explains that low sales and rising inventory, which are common for newly launched vehicles, contribute to the high days' supply number. Additionally, if a significant portion of the inventory is in transit to dealers and not available for sale, the reading can be misleading.

The transition to increasing EV adoption is not happening uniformly across all markets. Dealers in California have experienced steady growth in EV sales, but this has not been the case everywhere. In Texas, for example, Ford dealers initially saw a surge in demand for the F-150 Lightning. However, once early adopters received their orders and deliveries caught up, the majority of buyers showed a preference for gas-powered trucks. This has resulted in a slowdown in EV sales in the state.

Stephen Gilchrist, a dealer operator with 18 locations in the region, acknowledges that the EV era is still in its infancy and expects some stops and starts as adoption rates increase. He believes that the idea of everyone driving EVs by 2030 is not accurate. However, there are still enough buyers across the country who are interested in EVs, indicating that demand is not cooling.

Mike Sullivan, the owner of the LACarGuy network of dealerships, is confident that EVs will become a major force in the automotive industry. He believes that the transition is inevitable, and it is only a matter of time before EVs become more prevalent.