Electric vehicles (EVs) are reportedly taking up space at car dealership lots across the country.
Data reported by Cox Automotive uncovered that auto-makers including Ford, General Motors, Hyundai and Toyota are stuck with 90 days worth of unsold EV inventory lingering at their respective dealerships across the country, CarScoops reported. Many major manufacturers are reporting a combined total of roughly 92,000 unsold plug-in units that are “collecting dust.”
That 92,000 figure is three times more than what the combined amount of available EVs car dealerships had readily available for sale just last year, according to Reuters.
EV inventory reaches critical mass in U.S., Cox says https://t.co/PSIwnw1YV2 pic.twitter.com/aoDMsgfngr
— Automotive News (@Automotive_News) June 27, 2023
In spite of both federal and state government tax incentives for drivers to go electric, the aforementioned statistics could mark a “brief pause in the market growth of EVs across the country,” CarScoops noted.
Volkswagon (VW) confirmed 131 days worth of inventory for their EV offering, the ID.4, is waiting to be sold. The German automaker attributes the lack in sales to the model offering few versions with all-wheel drive capability. The company also cited “customer confusion” and general ambiguity regarding “tax credit eligibility of EV models” among prospective clients, CarScoops continued. (RELATED: China Dominates EV Market As Biden Pushes To Phase Out Combustion Engine)
Ford is said to be sitting on 86 days worth of F-150 Lightnings on top of 113 days worth of Mustang Mach-E inventory.
The American automaker disputed these figures from Cox, asserting that the lot life of these all-electric models is much less than what was published in the report. (RELATED: Ford To Spend Billions Building Michigan Electric Battery Factory That Relies On Chinese Intellectual Property)
The top sales analyst at Ford Motor Company, Erich Merkle, told CarScoops that “By no means are those inventories high.”
Merkle went on to say that F-150 Lightning inventories are at about 58 days (including vehicles in transit).
On the other hand, Mustang Mach-E inventories are slightly more stagnant, resting at 83 days of backed-up availability. “What we do know for sure is that Ford built 46,238 Mustang Mach-Es in the first half of the year and sold 14,040,” said Merkle.
“We need the automakers to step up and make a more affordable #electricvehicle in the U.S.” Insights on certain automakers’ rear-view thinking on #electriccars from @ev_association president Elaine Borseth. #EV #ad https://t.co/3AvhTybMbg
— Fast Company (@FastCompany) July 12, 2023
The average price-tag for an EV in the U.S. market came out to $61,488 at the end of 2022, according to the The New York Times.