Electric vehicles may be the darlings of the Biden White House and climate alarmists everywhere, but they are not selling at the rate the auto industry was led to believe they would. A prime example emerged in the U.K.
According to a report in the Evening Standard, major dealerships found the traditional internal combustion-powered vehicles continue to be the most sought after. Vertu Motors confirmed that holds true for both new and used purchases.
The business’ profits for 2023 are in line with expectations, but there is a notable exception.
The supply of EVs that are not moving is far outstripping demand, and vehicles are backed up on car lots. Production ramped up across the industry with several new models debuting, but demand remains soft even with prices coming down.
Vertu said this resulted in an imbalance for the year. “Manufacturers are reacting to this through the offer of discounted prices and supported finance rates to stimulate retail demand.”
Even Tesla, the industry’s standard-bearer which does not sell through dealerships, has cut prices recently to stimulate interest.
Pew Research June survey: 59% of Americans oppose a 2035 ban on new gas cars/trucks, up from 51% in April. And unsold #EVs keep piling up on lots. Yet whole of government and the Left thumb noses at citizenry by continuing to shove regs down our throats to mandate/limit choice. pic.twitter.com/1gxGbr76Nk
— Nick DeIuliis (@NickDeIuliis) August 31, 2023
An Axios report confirmed data from across the Atlantic. Jonathan Gregory is senior manager of economic and industry insights at Cox Automotive. He called the current situation a “Field of Dreams” moment for the industry.
Manufacturers are building EVs at a record pace. Now they are holding their collective breath to see if buyers will come.
Cox Automotive predicted that inventories will balloon through the remainder of 2023 in a midyear review. There has been a rapid expansion of production from Tesla and other automakers, but this output is not being met by buyers clamoring for their products.
In fact, the nationwide supply of EVs soared in 2023 thus far almost 350% to over 92,000 units.
Dealers currently have a 90-day supply of EVs on hand, which is double the industry average. Despite the overwhelming push from leftists, the free market remains the free market.
Consumers will buy what they want, even if alternative products are pushed onto them. When prices, quality and the all-important energy infrastructure are up to par, demand will certainly rise.
Until then, inventories are only going to be stacked higher.
