Experts: Demand for EVs Remains High Despite Growing Inventory

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【Summary】Experts say that despite electric vehicles (EVs) piling up on dealer lots for over 100 days, it doesn't mean that consumer demand is cooling. The high "days' supply" numbers are influenced by the pandemic and the transition to EV adoption happening unevenly across different markets. While some regions, like California, are seeing steady growth in EV sales, others are experiencing slower sales as early adopters have already made their purchases.

FutureCar Staff Aug 15, 2023 4:38 PM PT

Experts: Demand for EVs Remains High Despite Growing Inventory

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 simple as it appears. In 2023, retailers sold 8.6% of all vehicles as electric, but they only accounted for 6.7% of available inventory.

Tyson Jominy, Vice President of Data and Analytics at JD Power, has dismissed claims that demand for EVs is slowing, stating that the data is misleading due to various factors. The COVID-19 pandemic has disrupted supply metrics, and now that automakers are ramping up production, it is impacting the days' supply metric for EVs.

Jim Cain, a GM spokesperson, explains that low sales and rising inventory, common for newly launched vehicles, contribute to high days' supply numbers. Additionally, if a significant portion of that inventory is in transit to dealers and not available for sale, the reading can be further misleading.

The transition to increasing EV adoption is not happening uniformly across all markets. Dealers in California have seen steady growth in EV sales, while other regions, like Texas, have experienced fluctuations. Ford dealers in Texas initially experienced a surge in demand for the F-150 Lightning, but sales have slowed down as most buyers still prefer gas-powered trucks.

Stephen Gilchrist, a dealer operator in Texas, emphasizes that the EV era is in its infancy and expects stops and starts in adoption rates. 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, the owner of the LACarGuy network of dealerships, is confident that EVs will become a major force in the automotive industry. The pace of adoption may vary, but the destination is clear.