Summary
– Dealers are investing billions to support the transition to EVs
– Consumer demand for EVs is growing, but only 10% of new car sales nationwide are EVs
– Dealers have spent $5 billion on chargers, equipment, training, and marketing for EVs
– Consumers need more time, confidence, and incentives to make the switch to EVs
– Consumers are concerned about EV affordability, charging infrastructure, and charging speeds.
Article
Electric vehicles are becoming increasingly popular in the automotive industry, with auto dealers investing billions of dollars in support of the transition. Despite growing consumer demand, EV sales only make up about 10% of new car sales nationwide and 1% in Ohio. The U.S. EPA has set a mandate that 56% of new vehicle sales be EVs by 2032, which is out of step with consumer demand. Auto dealers have spent $5 billion on installing chargers, training staff, and marketing EVs, but large-scale consumer demand for EVs is still lacking.
Consumers are a crucial part of the conversation around the transition to EVs, as they are the ones ultimately making the purchasing decisions. However, consumers have concerns about the affordability of EVs, with prices being $7,000 to $12,000 more than internal combustion engine vehicles on average. Additionally, many EVs do not qualify for the full $7,500 tax credit, leading some consumers to opt for traditional vehicles. There are also concerns about charging infrastructure and speed, with fueling an EV still being more complicated and unfamiliar for the average motorist.
Auto dealers have a direct line to consumer demand and comfort, and they want to sell consumers the vehicles that best meet their needs, regardless of the powertrain. Despite the move towards an EV future, many consumers are not yet choosing EVs when purchasing new cars. The rapid increase required by the federal mandate may be too much, too soon, and may ultimately overlook the needs and concerns of consumers. When mandates are imposed on the market, it is the consumer who stands to lose the most.
In conclusion, the transition to electric vehicles is a significant part of the future of the automotive industry, but more work needs to be done to address consumer concerns and the current lack of large-scale consumer demand. Auto dealers have invested billions in support of the transition, but the government’s rapid mandate for increased EV sales may not align with consumer preferences. Ultimately, consumers should be at the forefront of the conversation around EVs, and their concerns about affordability, charging infrastructure, and choice should be taken into consideration moving forward.
Read the full article here
