Auto leaders have lowered their EV sales outlook after slow growth

In a new report, KPMG unveiled data showing how the auto-industry’s EV sales outlook has soured over the course of 2022.

Using survey responses from 900 auto executives, the accounting firm was able to compare EV market share hopes between 2021 and 2022. Last year, company leaders expected EV sales to account for 65% of total car transactions by the end of the decade. As of this week however, that number has fallen to 35%, and arrives after a year of difficult choices and unexpected complications. 

However, EV sales and production numbers have notably improved since the start of the year. Some research firms, such as J.D. Power, argue that consumer interest in the technology is much higher than previously imagined, and expect a 2023 market share increase of 5%. However, the possibility of a such growth is unlikely to change the minds of KPMG’s respondents. The auto-industry poured nearly $1 trillion into battery-powered and hybrid vehicle production, and while the cashflow has made improvements, it has failed to address the core issues of consumers and improve EV sales numbers.

Drivers have been unable to afford internal combustion engine alternatives due to record-breaking vehicle prices and high monthly auto-loan payments as a result of interest rate increases. The lack of charging infrastructure also limits the growth of EV sales.

However, while executives may have adjusted their forecasts, the auto-world is doing everything it can to beat expectations. Many automakers are now working with the Biden administration to increase charging station availability across the U.S. Dealerships are doing what they can to offer discounts and other services to customers to make offers more attractive. While the short term EV sales outlook is troubling, such efforts are still likely to pay off in the long run, provided businesses can make it a short while longer.

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