EVs Piling Up, Buyers Still Interested

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【Summary】Experts say that while electric vehicles (EVs) may be sitting on dealer lots for longer periods of time, it does not indicate a decline in consumer interest. The high "days' supply" numbers are influenced by various factors such as the pandemic's impact on supply metrics and the transition to EV adoption happening unevenly across different markets. Some regions have seen steady growth in EV sales, while others still prefer gas-powered vehicles.

FutureCar Staff Aug 14, 2023 9:28 AM PT

The transition to electric vehicles won't be smooth, and it won't happen evenly across the country, but high "days' supply" numbers don't necessarily mean consumers have lost interest.

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

The unusual supply metrics can be attributed to the pandemic and the subsequent impact on production rates. Automakers are now able to produce vehicles at their usual rates, which magnifies the days' supply metric for EVs. Jim Cain, a GM spokesperson, explains that low sales and rising inventory can result in a high days' supply number, especially if a significant portion of the inventory is in transit to dealers and not available for sale.

The transition to increasing EV adoption is not happening evenly across all markets. While dealers in California have seen steady growth in EV sales, other regions, like Texas, have experienced a different trend. Ford dealers in Texas initially saw a surge in demand for the F-150 Lightning, but once early adopters had their orders fulfilled, sales slowed down. Stephen Gilchrist, a dealer operator in the region, emphasizes that the EV era is still in its infancy and that higher adoption rates will come with stops and starts.

However, despite regional variations, there is still a significant demand for EVs in the country. Mike Sullivan, the owner of the LACarGuy network of dealerships, believes that EVs are destined to be a major force in the automotive industry. The pace of adoption may vary, but the direction is clear.