There’s a significant backlog in electric vehicle sales, suggesting a persistent shortage. In the past, buying a car meant choosing from available inventory at dealerships, but now it’s about placing orders and waiting for deliveries. Manufacturers aren’t stockpiling cars, opting instead to produce just enough to meet market demand. This shift might redefine how cars are bought, blurring the line between shortage and standard practice.
Used EV Market
The shortage of new EVs is impacting the used EV market too. With electric vehicles accounting for five percent of new car sales in the U.S., interest in used EVs is surging due to unstable gas prices, inflation, and increasing interest rates. This change represents a shift in consumer behavior; people are now actively seeking out used EVs as their first choice, a trend that has dramatically risen from just over 50 percent to 80 percent within a year.
Significance in the Automobile Industry
This shift holds immense significance for the automobile industry. Dealerships are witnessing a notable rise in EV sales, no longer limited to niche customers but attracting a significant portion of the general car-buying population. This growing demand for used EVs, with 80 percent of buyers willing to consider them, might lead to dedicated departments for these vehicles within dealerships.
The pricing trend for EVs is steadily increasing. Both new and used EVs are experiencing price hikes. The shortage is driving up prices, leading people to buy new EVs only to resell them, fueling the growth of the used EV market. However, despite these price increases, the shift towards mainstream adoption of electric vehicles continues.