Auto industry executives are expressing growing concerns about the viability of their ambitious electric vehicle (EV) plans, with signs of increasing inventory and slowing sales. While historically bullish on the future of EVs, GM’s Mary Barra acknowledged the challenges, stating, “As we get further into the transformation to EV, it’s a bit bumpy.” GM recently abandoned targets to produce 100,000 EVs by the second half of this year and another 400,000 by the first half of 2024.
Even Elon Musk of Tesla has cautioned about economic concerns affecting vehicle demand, while Mercedes-Benz has had to offer substantial discounts on its EVs to stimulate sales. CFO Harald Wilhelm remarked, “This is a pretty brutal space,” and raised doubts about the sustainability of the current state of the EV market.
The difficulty in selling EVs is evident as most of these vehicles are being sold below their sticker price, with some even having manufacturer incentives of nearly 10%. Dealerships are accumulating inventory, but it’s taking longer to sell EVs compared to their gasoline-powered counterparts as potential buyers consider cost, infrastructure limitations, and lifestyle barriers to EV adoption.
This shift in perspective by manufacturers aligns with earlier warnings from dealers about slowing EV demand. Ford extended its self-imposed deadline to achieve annual EV production targets and abandoned a 2026 goal to build 2 million EVs. In a similar move, Honda’s CEO Toshihiro Mibe revealed that the company had decided to end the development of affordable EVs, citing the challenging EV environment.
Toyota Motor Chairman Akio Toyoda, a long-time skeptic of pure-electric plans, commented, “People are finally seeing reality.” This collective acknowledgment of the EV market’s current challenges highlights the uncertainties and hurdles facing the industry in the near term.
I will not buy an electric vehicle!!! No good