No matter what happens, it will start in the dealerships that communities across the country trust to keep them getting where they want to go.
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August 11, 2023
5 Minutes of Fresh Perspective
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Lately, we’ve been reading a lot about the EV Surge and oversupply. We wanted to get the facts behind this unexplored electric territory, ask some essential questions, and deliver some essential facts, for navigating whatever comes next.
No matter what happens, it will start in the dealerships that communities across the country trust to keep them getting where they want to go. Let’s dive in.
What is Happening?
The Inventory Pile-Up: Inventories are bulging with about 92,000 EVs at dealerships. Don't mistake this for a slump; the industry is accelerating faster.
Sales Dynamics: 92 days to sell all-electric vehicles? It's a longer waiting game, but it's part of the EV's growing pains.
Why Is It Happening?
Increased Production: Automakers are racing to meet EV demand, resulting in a 342% increase in available EVs.
Price Wars: Thanks to the competition, new EV prices are down 15%, and price cuts from Tesla and Ford have made things even harder to predict.
Consumer Interest: While up to 51% of consumers are considering EVs, challenges like home charging access and resistance to change in driving habits create a complex buying landscape.
How Are Different Companies Dealing With It?
Tesla's Game: Using price cuts to boost demand, making waves in the market.
Ford's Stance: Disputing high inventory figures and focusing on hot models like F-150 Lightning.
GM's Approach: Emphasizing high demand but low inventory, a calculated positioning.
When Can We Expect Something to Change?
New Models on the Horizon: Over 90 new EV models are expected by 2026, potentially shifting the market dynamics.
Regulatory Pressure: The Biden administration's push for two-thirds EVs by 2032 may enforce change.
Consumer Behavior: As more consumers switch from gas to electric, expect a more synchronized production and sales cycle.
How Can Dealers Use This Time to Thrive?
Embrace the Inventory: High EV inventory means choices for consumers. Flaunt the variety, promote test drives, and emphasize their unique features.
Training & Education: Educate staff about EVs and position your dealership as an EV knowledge hub.
Invest in Marketing: Use this time to market the benefits of EVs, focusing on reducing resistance to change in daily driving habits.
Leverage Incentives: Promote government incentives to make EVs more attractive to consumers.
Focus on Service: Build customer loyalty through excellent service capabilities for EVs.
Telling It Like It Is
Every piece of news we read about this came preloaded with an opinion. We’ve done our best to leave those out, but will leave you with one closing thought:
Dealers, like many an automotive revolution before, are at the heart of EV inclusion. Between a potentially over zealous business model, and a hesitant consumer base, are retailers who ensure people have access to the vehicles they want to buy, information they need to make good decisions, and relationships they need to keep their family mobile for years to come.
