The electric vehicle market has faced a tough year in 2023, with the initial excitement among automakers, consumers and dealers giving way to frustration and disappointment. What are the factors that have prevented EVs from gaining market share and what should be done to overcome them?
On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Karl Brauer, executive analyst at iSeeCars.com. Brauer has spent years analyzing the car business and helping industry insiders form their strategies with expert insights into consumer trends. Recently, iSeeCars.com has reviewed this year’s data to determine where the electric vehicle market stands ahead of the new year and where it may be headed. Now, Brauer discusses this research and how it affects dealers across the country.
1. Although the electric vehicle market grew in 2023, it did not increase at the same speed it did in 2022. More interestingly, states with the highest EV market share saw the slowest adoption rates, while the states with the lowest market share saw some of the fastest growth.
2. Brauer believes this indicates that the electric vehicle market is running out of viable buyers. In any state, there will always be a set percentage of consumers who can afford to purchase an EV and are unphased by obstacles such as limited driving ranges, high prices and minimal charging infrastructure. Beyond those customers, however, it is much more difficult to spur demand due to the aforementioned challenges.
3. In 2023, the length of time it takes to sell an electric vehicle has nearly tripled, rising from a 20-day selling average to 57. Hybrids have also seen longer selling day averages but to a lesser extent, increasing from 20 to 37 days.
4. To overcome the challenges facing the electric vehicle market, OEMs and lawmakers will need to first address the challenges hampering EV adoption, namely driving ranges and charging infrastructure.
5. Hybrids have started to perform astonishingly well over the last several years. According to iSeeCars.com, seven of the ten fastest-selling models in October were hybrids. They have also proven more resilient than other vehicle types in retaining their value despite normalizing prices.
"Now you can spend a little more for the hybrid version, get substantially better fuel efficiency and never have range anxiety, and enough of the population has figured this out...The hybrids have broken through to the mainstream and they're selling really well." — Karl Brauer