A little bit of new auto biz news to use as discussion points with local direct dealers! Philip Jay LeNoble, Ph.D.

COMMENTARY

Pessimism About Electric Vehicles Persists

• by Tanya Gazdik , Staff Writer, 5 hours ago

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 that EVs will hurt both front and back-end financials. Nearly half (47%) of dealers saying 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% year-over-year, reflecting continued consumer interest.

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% year over year — 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 borken 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.”