According to NADA’s recent release, a letter was sent to the Biden Administration by 3,882 dealerships urging Biden to ‘slow down,’ citing an EPA proposal that could push battery-powered vehicles to 60 percent of new-vehicle sales by the 2030 model year and 67 percent by 2032.
We are auto dealers from across the country who collectively sell every major brand in the U.S. We are small businesses employing thousands of Americans. We are deeply committed to the customers we serve and the communities where we operate, which is why we are asking you to slow down your proposed regulations mandating battery electric vehicle (BEV) production and distribution.
Of course, these auto dealers across the country does not include Tesla. Their argument is that BEV inventory is pilling up at their dealerships and that they are having issues selling the vehicles
As of the start of November 2023, new-vehicle inventory volume in the US was sitting at a record 2.4 million units. It is safe to say that those are mostly gasoline-powered vehicles since the inventory level is currently higher than the number of EVs that the US will produce all year.
Customers are speaking with their choice of what they are buying
EVs are actually selling at a normal rate. It is the gasoline-powered vehicles that are not doing so good, and the reasons will not surprise you.
Last year, there was a lot of hope and hype about EVs. Early adopters formed an initial line and were ready to buy these vehicles as soon as we had them to sell. But that enthusiasm has stalled. Today, the supply of unsold BEVs is surging, as they are not selling nearly as fast as they are arriving at our dealerships — even with deep price cuts, manufacturer incentives, and generous government incentives.
The truth is that the current interest rates have affected all automotive sales, and the end of year inventories are very high, more than expected.
It’s true some of those people who placed reservations for EVs since prices are higher and gasoline-powered vehicle are getting cheaper.
But EV buyers are reconsidering their purchases now, as highlighted by the group of dealers, is not because they are not interested in EVs anymore.
It’s because they can’t afford the several hundred dollars more for the monthly payments now, thanks to high interest rates. As is the case with all cars, EVs or otherwise.
