EVs Piling Up on Dealer Lots, Buyers Still Interested

author: FutureCar Staff    

The transition to electric vehicles may not be smooth or evenly distributed across the country, but 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 more complex than it appears. In 2023, retailers sold 8.6 percent of all vehicles as electric, but they only accounted for 6.7 percent of available inventory.

Tyson Jominy, vice president of data and analytics at JD Power, refutes the claim that demand for EVs is slowing, stating that the data is misleading due to the current circumstances. The pandemic has disrupted supply metrics, and now that automakers can produce vehicles at their usual rates, it has magnified the days' supply metric for EVs.

According to Jim Cain, a GM spokesperson, low sales and rising inventory, which are common for newly launched vehicles, contribute to the high days' supply number. The reading can be further misleading 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. Dealers in California have experienced steady growth in EV sales, while other regions have not seen the same level of demand. In Texas, for example, Ford dealers initially experienced strong demand for the F-150 Lightning. However, once the early adopters received their orders and deliveries caught up, the majority of buyers preferred gas-powered trucks, resulting in a slowdown in EV sales.

Stephen Gilchrist, a dealer operator with 18 locations in the region, explains that the EV era is still in its infancy, and there will be stops and starts as adoption rates increase. He believes that the idea of everyone driving EVs by 2030 is inaccurate.

Despite regional variations, there is still significant demand for EVs in the country. Mike Sullivan, owner of the LACarGuy network of dealerships, is confident that EVs will become a major force in the automotive industry. He acknowledges that the pace of adoption may vary but believes in the ultimate destination.

FutureCar Staff