According to new research from CDK
Global, a majority (65%) of electric vehicle dealers are feeling pessimistic about the future of EVs.
More than half (53%) of dealers think EVs will hurt both front- and back-end
financials. Nearly half (47%) of dealers say their customers aren’t interested in EVs because charging is too difficult or takes too long. Only 7% of dealers nationally said their customers were
very or extremely interested in EVs.
Similarly, Cars.com is reporting a significant increase in EV inventory -- which has led to some oversupply, prompting a 5% reduction in new EV
prices to an average of $62,927. But this price adjustment seems to be working -- demand for new EVs is up 10% YoY.
The latest Cars.com April Industry Insights report indicates consumers are increasingly searching for domestic brands like the Chevrolet Blazer
EV, which is breaking into the top five new EV searches. Despite the ups and downs, total EV searches are up 38% YoY, reflecting continued consumer interest.
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While new EV searches
are up 10%, they're staying on dealer lots longer (average 81 days). Demand for used EVs is skyrocketing (up 45%), with prices dropping 20% as supply increases (up 42%).
The average
new-car price remains stable at approximately $49,111, down slightly by 1.5% YoY. Although prices are higher than before the semiconductor shortage, there’s a notable effort by automakers to
introduce more vehicles priced under $30,000, which have seen the most market share growth so far in 2024, according to Cars.com.
Affordability remains an issue, which is why
Volkswagen and Renault have been in talks to jointly develop an affordable electric version of the Twingo car. But those talks have reportedly broken down, per Reuters. The automakers hoped that
the teamwork would cut costs that represent a key hurdle in response to cheaper electric cars from China.
It’s interesting that while other automakers (including Ford) are stepping back from an emphasis on EVs, instead promoting a range of power
options, Hyundai is touting “The Most Electric EV Lineup” on its website — an initially puzzling tongue-in-cheek turn of phrase
that is meant to emphasize an “exciting” lineup of vehicles.
The automaker is also breaking a high-energy campaign focusing on EVs from Innocean with a new
tagline. “There’s Joy in Every Journey” replaces “It’s Your Journey.”