If you're looking for an electric vehicle, there's probably one collecting dust or rust at a car dealership near you. As sales and demand dwindle, the inventory of EVs on car lots has exploded by more than 500% in the past year, according to the latest report by CarGurus. "Typically, dealers like to keep a 60-day supply of vehicles on the ground," says KTRH Car Pro Jerry Reynolds. "The EVs are now around 120 days on the lot, so twice what dealers would like."
The biggest issue with EVs continues to be the price, with the average electric car 28% more expensive than a gas vehicle. And that is even with a decline in the average EV price, plus tax incentives covering about 10% of the cost. "It's not just the price," says Reynolds. "People are still concerned about the things they've been concerned about all along (with EVs), such as the infrastructure, charging, and that sort of thing."
Under intense pressure by the Biden administration and the green movement, car companies have aggressively ramped up production of EVs in recent years. But these disappointing numbers now have the industry tapping the brakes a bit. Ford And GM are both cutting production of some EVs, and concern about the cheaper labor costs of EVs was a factor in the recent UAW strike. Even the U.K. has reversed its EV push amidst a similar decline in sales and demand. "Electric vehicles were hot when they first came out, and there was a lot of curiosity about them," says Reynolds. "But since that time, demand has waned, and it's going to be a slow-go from this point on."
In fact, Reynolds believes utopian predictions of an all-electric vehicle future are pure fantasy. "As we move forward and they get the costs under control, there's a chance that these will eventually be successful," he tells KTRH. "But I've always said they are going to be a percentage, and I think a fairly small one---like 10 or maybe 15 percent of total sales across the board."